Term
EBITDA
Earnings before interest, taxes, depreciation and amortization: operating income with depreciation and amortization added back. It shows what the business generates before its debt, its taxes and the wear of its assets. It is not cash in the bank.
In pesos: A taco stand that sells $100,000 MXN in a year, pays $70,000 for ingredients, rent and wages, and writes off $5,000 for the wear of its grill has an operating income of $25,000 and an EBITDA of $30,000.
Where to go deeper
2/4 6 min Read What you actually buy when you buy a share A share is a piece of a company, not a number on a screen. Where its value comes from, why the price moves, what a dividend is, and why it is not a lottery ticket.More terms on the same topic
Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.