Finance & Corporate Jargon · Managing Director level

"EBITDA"

"EBITDA" stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, and is used as a measure of a company's core operating profitability.

Say this instead: operating profit

How "EBITDA" shows up at work

The metric companies reach for when net income is unflattering. Strip out enough line items and any business looks healthy. Investors know this; founders present it anyway, often in the same slide as "path to profitability."

Buzzword

Our EBITDA margin improved by four points compared to the same quarter last year.

Plain English

Our core operating profit margin improved by four points compared to the same quarter last year.

Corporate Rank: Managing Director · Category: Finance & Corporate Jargon

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