Learn more about common financial (and startup) terms here. To learn more about Pilot, fill out the form below.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is a measure of a company's operational profitability, disregarding non-operating expenses like interest, taxes, and non-cash expenses of depreciation and amortization.
EBITDA provides a clearer picture of a company's profitability from its core business operations, making it a useful metric for comparing companies within the same industry. However, it's important to note that EBITDA doesn't include the cost of capital investments like property, plant, and equipment, which are necessary for most businesses.
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