If you’re running a business, you’ve probably come across the term EBITDA. Understanding this metric can be incredibly useful, providing insights into your company’s operating performance and helping to shape your strategic decisions.
EBITDA is an acronym that stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It zeros in on the earnings from your business's core operations by leaving out expenses that can vary widely between different companies, such as tax rates and interest expenses. This gives you a cleaner measure of your company’s profitability from its day-to-day activities.
Listen to this episode to learn more about how to evaluate and calculate this important business metric, avoid it’s flaws, and most importantly - learn how to drive EBITDA to improve profitability and grow your business asset.
P.S. This works for your personal finances as well!!
Ep 37: How to use EBITDA to drive your business