Changes

'''EBITDA''' means '''Earnings Before Interest [[Tax]]es Depreciation and Amortization'''.  It is a very quick estimation of a company's operating cash flow.

'''EBITDA''' means '''Earnings Before Interest, [[Tax]]es, Depreciation, and Amortization'''.  It is a very quick estimation of a company's operating cash flow.

Many lenders require their customers to report EBITDA to them on a quarterly basis as it's own number or as part of a ratio.  These 'covenants' are used by the lenders as indicators of the solidity of their loans.

Many lenders require their customers to report EBITDA to them on a quarterly basis as its own number, or as part of a ratio.  These "covenants" are used by the lenders as indicators of the solidity of their loans.

EBITDA is often used as a starting point in determining the price of a business.  For example, a privately held business might be sold for a ratio of 5 to 7 times normalized EBITDA.

EBITDA is often used as a starting point in determining the price of a business.  For example, a privately held business might be sold for a ratio of 5 to 7 times normalized EBITDA.

[[Category:Business]]

[[Category:Business]]