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EBITDA

Technical Finance Acronym Finance

Earnings Before Interest, Taxes, Depreciation, and Amortization. Profit with the awkward parts removed. Beloved by companies whose awkward parts are substantial.

Heard in the wild

“They're EBITDA-positive, which is doing a lot of work in that sentence.”

Tone check: Technical

Useful for comparisons, dangerous as gospel. Charlie Munger had opinions about this metric; they were not kind.

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