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Abbreviation for for Earnings Before Interest, Taxes, depreciation and amortization. EBITDA is useful for comparing companies with different capital structures. Companies with significant fixed assets, such as manufacturing companies, which incur large depreciation charges or have significant intangible assets which result in large amortization charges can easily be compared. It is also a useful measure for a company's creditors as it is shows the the income available for interest payments.
See also: Cash Flow, Free Cash Flow, EBIT, Operating Cash Flow