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Financials
EBITDA
Earnings before interest, taxes, depreciation, and amortization (a rough cash-earnings proxy).
EBITDA
EBITDA is commonly used to compare operating performance across companies.
Limitations
EBITDA ignores:
- Capital expenditures (capex)
- Working capital changes
- Debt load (interest)
It is useful, but not a substitute for free cash flow.