EBITDA And The Warnings Of Charlie Munger Authored by Lance Roberts via RealInvestmentAdvice.com, This past week, Greg Feirman wrote an interesting article about “The Perils Of Adjusted EBITDA.” Before we get into his discussion, let’s discuss what EBITDA is. EBITDA is an acronym that stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” Over the years, EBITDA has become a go-to metric for evaluating corporate performance as it offers a simple way to assess a company’s profitability by removing non-cash charges and financing effects. However, the problem with EBITDA is that simplicity often comes at the cost of accuracy. Why do I say that? Because EBITDA ignores critical costs, such… — Continue at ZeroHedge News : Read More
