Excluded is not eliminated
Debt costs, taxes and asset wear remain relevant. EBITDA does not replace net income or cash flow.
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EBITDA and its limits
EBITDA is earnings before interest, taxes, depreciation and amortisation. It is not freely available cash.
Adjusted measures
Read extra exclusions and the reconciliation to reported earnings. Identical labels can hide different methods.
FinFly practice
Compare years consistently and inspect capital spending separately. Higher EBITDA does not promise dividends.
Method
Primary sources
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