The Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is one of the indicators that companies can use to calculate their financial performance.
With the EBITDA indicator companies report their profits before the charges of depreciations and amortization, interest and taxes.
EBITDA = Revenues – Expenses
(From the expences they exclude taxes, interest, depreciations and amortization)
This indicator is analyzing profitabilities amongst companies and sectors and can also portray a company’s debt capacity.