EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is the measure of cash flow calculated as revenue-expenses that has not yet taken into account the tax, interest, depreciation, and amortization at the time that it is earned. EBITDA is primarily concerned with the company's cash flow. By not including interest, taxes, depreciation, and amortization, we can clearly see the amount of money that a company brings in. This is especially useful when one company is considering a takeover of another since EBITDA would cover any loan payments needed to finance the takeover.

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