Profitability
EBITDA
Operating profit before depreciation and amortisation, often used as a rough proxy for operating cash generation.
EBITDA stands for earnings before interest, taxes, depreciation and amortisation. It adds the non-cash charges for wear and tear of assets back on top of operating profit.
It is popular for comparing companies with different amounts of equipment or acquisitions, but it ignores the real cost of replacing assets. That's why EBITDA is usually higher, sometimes much higher, than operating profit.
General explanation for education only, not investment advice. Company-specific definitions can differ; each breakdown uses the company’s own.