#EBITDA

EBITDA is the magical figure proclaimed to reveal a company’s true earning power, while actually erasing the inconvenient realities of interest, taxes, depreciation, and amortization. Investors revere this metric as though it were sacred, scrambling to parade profitability even amid red ink. In truth, it serves as a handy excuse to elegantly sidestep accounting scandals. Yet for those dancing to the tune of phantom numbers, it apparently stands as the most trustworthy truth.