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Earnings Before Interest, Taxes, Depreciation and Amortization
Earnings before interest, taxes, depreciation, and amortization are commonly shortened to EBITDA. EBITDA reports a company's profits before interest on debt and taxes owed or paid to the government are subtracted.
EBITDA is used to compare the profitability of a company with other companies of the same size in the same industry but which may have different levels of debt or different tax situations.