EBITDA
EBITDA - Earnings Before Interest, Taxes, Depreciation, and Amortisation. Interest: the company would have borrowed money. This is the amount it needs to pay back. Taxes: the company owes the government some taxes. Depreciation: the company owns assets. These would differ from industry to industry. But the assets lose value over time. Like say a company car – it would lose its value with time. Companies have machinery, vehicles, computers, and even furniture that lose value with time. Amortization: this refers to the cost of intangible assets like patents, copyrights, etc.