April 20, 2024

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EBITDA

EBITDA (earnings before interest, taxes, depreciation, and amortization) measures a company’s profitability only for its operating business, thus excluding any effects of debt, state payments, and costs associated with maintaining its assets. Revenues are subtracted from operating costs (e.g. wages, raw material costs, services etc.) but not from declining asset values, borrowing costs, lease expenses, or obligations to governments.

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