What is EBITDA? A Simple Explanation That Finally Makes Sense
EBITDA shows how much your core operations earn before interest, taxes, depreciation, and amortization. This post explains what it is, how to calculate it (two simple formulas), where it’s most useful (valuation, lending, benchmarking), and why it’s not the whole story—because it ignores capex and debt. Use EBITDA as one tool alongside cash flow and leverage metrics.