What is Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)?

Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) is a measurement of a company’s financial performance and current operating profitability. It is calculated using a company’s net earnings, before interest expenses, taxes, depreciation, and amortization are subtracted.

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Don’t Let EBITDA Get You Down

EBITDA is an acronym of great importance if you’re a small business owner...
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OTHER TERMS BEGINNING WITH "E"

  • Employer Identification Number (EIN) Certificate

    An employer identification number (EIN) is a nine-digit number assigned by the IRS. It's used to identify the tax accounts of corporations, employers and other types of tax paying entities. The IRS uses the number to identify taxpayers who are…

  • Equipment Financing

    Equipment financing is a type of business loan designed specifically for purchasing machinery and equipment essential to running your business.

  • Equipment Refinancing

    Equipment refinancing is a type of asset-based lending where a business's working equipment serves as collateral for the loan. It is a financial tool used to convert long-term assets into cash in hand. The purpose of refinancing is typically to…

  • Equity

    Equity, in the context of finance and accounting, refers to the ownership interest in a company, also known as shareholders' equity or stockholders' equity. It represents the residual claim on assets after deducting liabilities. Equity is a key component of…

  • Equity Financing

    Equity financing is a funding process where a business owner sells shares of the company in return for capital. These funds can be used for short-term needs such as to pay bills business operations or long-term growth.

  • Exit Financing

    Exit financing refers to the financing obtained by a company that is undergoing a financial restructuring, typically in the form of a Chapter 11 bankruptcy filing or a significant operational turnaround. It provides the necessary capital to fund the company's…

  • Export Factoring

    A specialized variant of invoice factoring, export factoring, caters specifically to businesses that sell goods internationally. It offers non-recourse funding, meaning the business gets paid upon shipment without the risk of non-payment by the overseas buyer. The solvency of the…

  • Export Finance

    Export finance refers to the financial services and products designed to support businesses engaged in international trade by providing them with the necessary funding, risk management tools, and other financial solutions to facilitate and optimize their export transactions. Export finance…

  • Extended Payment Terms

    Extended payment terms refer to the practice of allowing buyers to delay payment for goods or services beyond the standard payment period agreed upon with suppliers. Instead of making immediate payment upon receipt of goods or services, buyers are granted…