EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of core profitability.

EBITDA strips out financing costs, tax environments, and accounting non-cash charges to give a cleaner view of operating profitability. It is widely used in M&A and leveraged finance to compare companies. Critics note it ignores capital expenditure requirements, which matters in capex-heavy industries.

Analysts compared the two firms using EBITDA to strip out differences in taxes and debt.