EBITDA – Explained So Simply a Child Would Get It
If you’re a business owner, you’ve probably heard the term EBITDA thrown around in meetings. It sounds technical. Complicated. Maybe even intimidating. But it doesn’t have to be. Let me explain it the same way I would to my daughter. EBITDA stands for: Earnings Before Interest, Taxes, Depreciation, and Amortization. That’s a mouthful — but the idea behind it is actually simple. Why Is EBITDA Important? EBITDA tells you how much money a business is generating from its core operations. In other words: 👉 Is the business itself healthy?👉 Is it producing real operating profit? It strips away things like: