Free-Reprint Article Written by: Melissa Mashtonio See Terms of Reprint Below.
***************************************************************** * * This email is being delivered directly to members of the group: * * [email protected] * ***************************************************************** We have moved our TERMS OF REPRINT to the end of the article. Be certain to read our TERMS OF REPRINT and honor our TERMS OF REPRINT when you use this article. Thank you. This article has been distributed by: http://Article-Distribution.com Helpful Link: The Digital Millennium Copyright Act - Overview http://www.gseis.ucla.edu/iclp/dmca1.htm --------------------------------------------------------------------- Article Title: ============== Business School for Non-Business Minds: What Is EBITDA? Article Description: ==================== I was sitting in a company meeting recently and as usual the financial talk led to odd acronyms you rarely hear outside the boardroom. The one that caught my ear? EBITDA. It sounds like a word spoken by Latka on Taxi, doesnt it? But what is it? Additional Article Information: =============================== 426 Words; formatted to 65 Characters per Line Distribution Date and Time: 2008-04-24 11:24:00 Written By: Melissa Mashtonio Copyright: 2008 Contact Email: mailto:[EMAIL PROTECTED] For more free-reprint articles by Melissa Mashtonio, please visit: http://www.thePhantomWriters.com/recent/author/melissa-mashtonio.html ============================================= Special Notice For Publishers and Webmasters: ============================================= If you use this article on your website or in your ezine, We Want To Know About It. Use the following URL to let us know where you have used this article, and we will include a link to your website on thePhantomWriters.com: http://thephantomwriters.com/notify.php?id=5969&p=load HTML Copy-and-Paste and TEXT Copy-and-Paste Versions Of Article Are Available at: http://thePhantomWriters.com/free_content/db/m/business-school-minds.shtml#get_code --------------------------------------------------------------------- Business School for Non-Business Minds: What Is EBITDA? Copyright (c) 2008 Melissa Mashtonio Manta http://www.manta.com I was sitting in a company meeting recently and as usual the financial talk led to odd acronyms you rarely hear outside the boardroom. The one that caught my ear? EBITDA. It sounds like a word spoken by Latka on Taxi, doesnt it? But what is it? EBITDA (pronounced eee-bit-da) is an acronym for earnings before interest, taxes, depreciation and amortization. At its most basic, EBITDA is a measure of a companys profits. But its not as simple as that. EBITDA came to prominence in the 1980s as leveraged buyout investors used it to calculate whether companies could pay back the interest and retire the debt on financed deals after a restructuring. Investors promoted EBITDA as a tool to determine whether a company could service its debt in the near term, say over a year or two. The use of EBITDA has since spread to a wide range of businesses. Proponents say EBITDA offers a clearer reflection of operations by stripping out expenses that can obscure how a company is really performing. However, EBITDA in not a defined measure according to generally accepted accounting principles (GAAP). In the calculation of EBITDA, interest, which is largely a function of management's choice of financing, is ignored. Taxes are left out because they can vary widely depending on acquisitions and losses in prior years; this variation can distort net income. Finally, EBITDA removes the arbitrary and subjective judgments that can go into calculating depreciation and amortization. By eliminating these items, EBITDA makes it easier to evaluate the financial health of various companies and to compare against industry averages. It also is useful for evaluating firms with different capital structures, tax rates and depreciation policies. EBITDA is a good measure of the fundamental earning power of a companys operations because it eliminates some of the extraneous factors and allows for a more apples-to-apples comparison with its peers. At the same time, EBITDA gives investors a sense of how much money a young or restructured company might generate before it has to hand over payments to creditors and Uncle Sam. But there are some problems with measuring a company by EBITDA. It leaves out the cash required to fund working capital and the replacement of old equipment, which can be significant. ETBITDA should not be used to determine a companys cash flows; one should continue to use the statement of cash flows. Like any other financial metric, EBITDA is only a single indicator and should be used with a variety of others measures to determine the full health of any company. --------------------------------------------------------------------- Melissa Mashtonio writes for Manta.com, the authority for finding 45 million free company profiles covering large to small firms worldwide--and their related industries and products. Empowered with CRM tools, users compete smarter, accelerate sales prospecting and partnering, and identify revenue opportunities faster. Use http://www.manta.com to evaluate the financial health of potential partners and competitors. --- END ARTICLE --- Get HTML or TEXT Copy-and-Paste Versions Of This Article at: http://thePhantomWriters.com/free_content/db/m/business-school-minds.shtml#get_code ..................................... TERMS OF REPRINT - Publication Rules (Last Updated: May 11, 2006) Our TERMS OF REPRINT are fully enforcable under the terms of: The Digital Millennium Copyright Act http://thomas.loc.gov/cgi-bin/query/z?c105:H.R.2281.ENR: ..................................... *** Digital Reprint Rights *** * If you publish this article in a website/forum/blog, You Must Set All URL's or Mailto Addresses in the body of the article AND in the Author's Resource Box as Hyperlinks (clickable links). * Links must remain in the form that we published them. Clean links should point to the Author's links without redirects having been inserted into the copy. * You are not allowed to Change or Delete any Words or Links in the Article or Resource Box. Paragraph breaks must be retained with articles. You can change where the paragraph breaks fall, but you cannot eliminate all paragraph breaks as some have chosen to do. * Email Distribution of this article Must be done through Opt-in Email Only. No Unsolicited Commercial Email. * You Are Allowed to format the layout of the article for proper display of the article in your website or in your ezine, so long as you can maintain the author's interests within the article. * You may not use sentences from this article as an input for any software that steals sentences from others in order to build an article with software. The copyright on this article applies to the "WHOLE" article. *** Author Notification *** We ask that you notify the author of publication of his or her work. Melissa Mashtonio can be reached at: [EMAIL PROTECTED] *** Print Publication Reprint Rights *** If you desire to publish this article in a PRINT publication, you must contact the author directly for Print Permission at: mailto:[EMAIL PROTECTED] ..................................... If you need help converting this text article for proper hyperlinked placement in your webpage, please use this free tool: http://thephantomwriters.com/link-builder.pl ===================================================================== ABOUT THIS ARTICLE SUBMISSION http://thePhantomWriters.com is a paid article distribution service. thePhantomWriters.com and Article-Distribution.com are owned and operated by Bill Platt of Stillwater, Oklahoma USA. The content of this article is solely the property and opinion of its author, Melissa Mashtonio http://www.manta.com --------------------------------------------------------------------- XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX --------------------------------------------------------------------- ------------------------------------ *-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-* To have your article appear in this distribution list, you must absolutely be a client of thePhantomWriters. We offer a paid article distribution service, and this is one of the more than 60 groups where we submit our client articles. To learn more about our program, visit: http://thePhantomWriters.com/x.pl/tpw/index.htmYahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/thePhantomWriters/ <*> Your email settings: Individual Email | Traditional <*> To change settings online go to: http://groups.yahoo.com/group/thePhantomWriters/join (Yahoo! ID required) <*> To change settings via email: mailto:[EMAIL PROTECTED] mailto:[EMAIL PROTECTED] <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
