9. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
Provides a snapshot of a company’s operational profitability by excluding interest, taxes, depreciation, and amortization. It helps assess core business performance and compare profitability across companies.
Example: A company has $120,000 in revenue, $40,000 in operating expenses (excluding interest, taxes, depreciation, and amortization). EBITDA would be $120,000 - $40,000 = $80,000.
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