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EBITDA

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Description

Earnings Before Interest, Taxes, Depreciation, and Amortisation; a measure of a company’s operating performance.

EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortisation, provides insight into a company’s operational efficiency by excluding the effects of financing and accounting decisions. It’s a popular measure among analysts for comparing company performance without the distortions of tax jurisdictions, capital structure, or accounting practices. This metric is particularly useful in industries with significant physical assets, highlighting true operating profitability.

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