EBITDA

An acronym for earnings before interest, taxes, depreciation and amortization, pronounced ee-bit-dah. EBITDA is a measure of a company’s operating performance that excludes non-operating expenses and certain noncash expenses. EBITDA provides insights on the profitability of a company’s operating decisions by looking at core operations. Profitability measured in this manner excludes the impact of capital structure, leverage and noncash items, which are financial as opposed to operating decisions.