A main weakness with EBITDA is how much it removes from a company's expenses. A corporation with a higher tax rate still has to pay at that higher rate, for example. Taxes still represent money ...
Some deals will allow the borrower to add back to its EBITDA charges, costs, and losses to the extent another party indemnifies the borrower for these amounts. For example, in an acquisition ...
By removing or understating certain expenses, for example, fluffy Ebitda metrics may provide an incomplete or inaccurate ...
In addition to net profit, two common metrics used to assess a company's core strengths and weaknesses are gross profit and earnings before interest, taxes, depreciation, and amortization (EBITDA).