{"id":2141,"date":"2022-10-17T15:35:42","date_gmt":"2022-10-17T15:35:42","guid":{"rendered":"https:\/\/business.mulembenation.co.ke\/terms\/ebitda\/"},"modified":"2022-10-17T15:35:42","modified_gmt":"2022-10-17T15:35:42","slug":"ebitda","status":"publish","type":"glossary","link":"https:\/\/mulembenation.co.ke\/business\/terms\/ebitda\/","title":{"rendered":"EBITDA"},"content":{"rendered":"<p>Earnings Before Interest Taxes <span class=\"\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Depreciation<\/span> and <span class=\"\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Amortization<\/span>, <span class=\"\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">EBITDA<\/span>, is used as a measure of profitability that includes some business costs but not all. EBITDA  measures company performance but excludes the following business costs: interest, taxes, depreciation, and amortization. These business expenses are considered financing or debt structure that could change based on an owner&rsquo;s decision. That explains why EBITDA is often used to value a business for sale. The <span class=\"\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>use<\/span> of EBITDA as a measure of profitability is a matter of convention rather than fact. This means that even though EBITDA is USED as as measure of profitability, it is NOT a measure of profitability.<\/p>\n<h2>Disclaimer<\/h2>\n<p>Kindly note that this is not financial advice.Our website services, content and products are for general informational and educational purposes only and is not a substitute for professional advice. We remind our readers to be careful with their money.You should NOT rely upon the information or opinions you read. Preferably, you should use what you read here as starting points for doing independent research on companies, products and investing techniques. Then judge for yourself the worthiness of the material that has been shared in our website.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Earnings Before Interest Taxes Depreciation and Amortization, EBITDA, is used as a measure of profitability that includes some business costs but not all. EBITDA measures company performance but excludes the following business costs: interest, taxes, depreciation, and amortization. These business expenses are considered financing or debt structure that could change based on an owner&#x2019;s decision. &#x2026; <a title=\"EBITDA\" class=\"read-more\" href=\"https:\/\/mulembenation.co.ke\/business\/terms\/ebitda\/\" aria-label=\"Read more about EBITDA\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"menu_order":0,"template":"","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-2141","glossary","type-glossary","status-publish","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>EBITDA | Mulembe Business<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/mulembenation.co.ke\/business\/terms\/ebitda\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"EBITDA | Mulembe Business\" \/>\n<meta property=\"og:description\" content=\"Earnings Before Interest Taxes Depreciation and Amortization, EBITDA, is used as a measure of profitability that includes some business costs but not all. 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