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Money

EBITDA

Earnings before interest, tax, depreciation and amortisation. Profit before the costs of debt, tax and the slow write-down of things the company owns. A rough guide to whether the day-to-day business makes money.

You'll hear it as

EBITDA is positive, so the board is happy, even though we're still paying off the loan.

Why it matters to you.

It's the number buyers and investors quote, and it flatters. Big costs can sit outside it.

Related terms.

Videos.

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