EBITDA

Earnings Before Interest Taxes Depreciation and Amortization. The way I like to think about EBITDA is the pre-tax cash earning power of the business. It is not much different than the notion of Operating Income which is revenue minus cost of goods sold and operating expenses. But it takes out the two big non-cash items in an income statement, depreciation and amortization.

 

(Full Post: http://www.avc.com/a_vc/2011/09/ebitda.html)


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Fred Wilson 

Fred Wilson has been a venture capitalist since 1987. He currently is a managing partner at Union Square Ventures and also founded Flatiron Partners. Fred has a Bachelors degree in Mechanical Engineering from MIT and an MBA from The Wharton School of Business at the University of Pennsylvania. Fred is married with three kids and lives in New York City.

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Filed Under:
Collection: Operations
Category: Accounting & Finances