What is EBITDA? Explained!

is an acronym and it stands for earnings before interest, taxes, depreciation, and amortization. So, it's the net earnings of a business adding back in the interest the business paid on loans, the taxes the business paid, the depreciation that reduced its income. The depreciation to assets is an accounting term, accounting construct, calculation that reduces earnings. And then amortization, which is similar to depreciation. Depreciation is on sort of um um hard assets. So, if you buy a huge piece of equipment for your business, you might depreciate it over time. You write that off. You reduce your earnings because the the asset is is losing value over time. Could be a couple years, could be 15 years. And amortization is on intangible assets like goodwill and other things like that.