EBITDA= Revenue - Expenses (excluding Interest, Taxes, Depreciation and Amortization)
EBITDA can be used to analyze and compare profitability between companies and industries because it eliminates the effects of financing and accounting decisions.The companies often change the items included in their EBITDA calculation from one reporting period to the next.As the items in EBITDA changes we may not get the real profit or loss incurred so this factor will be useful to check the companies actual performance.
