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'''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|cash flow]].
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.
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.