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For the college student:
Earnings Before Interest, Tuition, Drugs, and Alcohol
John's EBITDA for the year was negative $15,000 because he could not find summer employment, his parents stopped paying his tuition, he got addicted to drugs, and his binge drinking continued
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1. Earnings before Interest, taxes, depreciation and amortization.
2. Earnings Before I Trick the Damn Auditor
What is your EBITDA this year?
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In finance, "earnings before interest, taxes, depreciation and amortization," sometimes "EBIT-DA." In accounting, a way-station in the slow morph from "conceptual" to "pure cash flow" reporting. Compare "EBAWDWTCAE"--"earnings before anything we don't want to count as expenses."
The net is negative but the EBITDA is sensational.
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EBITDA, or earnings before interest, taxes, depreciation, and amortization, is an alternate measure of profitability to net income. By including depreciation and amortization as well as taxes and debt payment costs, EBITDA attempts to represent the cash profit generated by the company's operations.
The company's financial report highlighted a strong performance, showcasing a significant increase in EBITDA over the last quarter.