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Earnings Before Interest, Taxes, Depreciation and Amortization - EBITDA
Earnings excluding expenses from depreciation, amortization, interest, and taxes (earnings + ITDA). It's the operating income with expenses for depreciation and amortization backed out. In layman's terms, EBITDA is called "Earnings, before all the bad stuff." EBITDA can be used to analyze and compare profitability between companies and industries because it eliminates the effects of financing and accounting decisions.
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