Thursday , June 4 2020
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How many words are in EBITDA?

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

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