Thursday , June 4 2020
Home / FT Alphaville / How many words are in EBITDA?

How many words are in EBITDA?

Summary:
The word ebitda, like the words justice, freedom and equality, means different things to different people.Some like the plain vanilla version of the financial metric, which simply adds the non-cash costs of amortisation and depreciation back to earnings before interest and tax.Others, however, like to add a bit more spice. Why not chuck in some other pre-tax expenses? Stock options aren’t a cash cost, so yeah why not? How about restructuring costs (who cares if it represents cash flowing out the business if it’s just a one-off)? Etc. etc.Much of the focus on adjusted ebitda metrics has been on the equity and private credit side. Think of Uber and Lyft’s liberal use of the term since their respective public offerings, WeWork’s infamous “community-adjusted ebitda”, or as Bloomberg’s Davide

Topics:
FT Alphaville considers the following as important:

This could be interesting, too:

Miles Kimball writes Adam McCloskey and Pascal Michaillat: Calculating Incentive Compatible Critical Values Points to a t-Statistic of 3 as the 5% Critical Value after Accounting for p-Hacking

Tyler Cowen writes What should I ask Rachel Harmon?

Tyler Cowen writes Our regulatory state is broken, installment #1837

Tyler Cowen writes Wednesday assorted links

FT Alphaville
FT Alphaville is a free daily news and commentary service giving finance professionals the information they need, when they need it. In a world where market professionals are inundated with information there is a pressing need to edit and filter, and hopefully sow a few ideas along the way. That’s where the FT Alphaville team comes in.

Leave a Reply

Your email address will not be published. Required fields are marked *