Why is EBITDA built the way it is?
In this video, we discuss the concept of EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). I explain why EBITDA is built the way it is and its significance in assessing a company's normalized profitability or operating cash flow. Through examples and an EBITDA schedule, I demonstrate how to calculate EBITDA and the adjustments involved. By stripping out company-specific factors, EBITDA allows for better comparability between businesses.
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