What is EBITDA?
Jan 04, 2023EBITDA is something you may have heard in the finance world. But what is it? And what does it tell you?
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. When you take your earnings and add back in interest expense, taxes, depreciation, and amortization you'll get your EBITDA.
For many of you this number may be the same as your net profit (earnings) because you don't have interest, taxes, depreciation, and amortization to pay but if your EBITDA is different than net income, it's important to know.
What you'll hear in this episode:
[1:23] What is EBITDA?
[2:32] What are depreciation and amortization?
[7:46] Why a tax return is designed to show the worst performance of a business.
Related episodes:
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174. Building Wealth Habits with Candy Valentino
176. When Should You Hire a Fractional CFO?
Resources:
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The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.
