Earnings Before Interest, Taxes, Depreciation, and Amortization; intended to be a measure of the amount of cash generated by a company's operations (but leaving out the costs of financing and taxes - the "I" and the "T").

The danger with EBITDA is that if the "D" and "A" represent a "using up" of an asset that will have to be replaced in the future, then they really are operations-related expenses, making EBITDA too liberal a number.

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