EBITDA's Foggy Bottom Line
Once upon a time, most companies treated revenues, cash flow, and net income as the sacred measures of performance -- the numbers on which investors should focus. Then about a decade ago, media and technology outfits adopted their own performance benchmark -- a variation on cash flow known as EBITDA, or earnings before interest expense, taxes, depreciation, and amortization. Telecoms followed suit, and over the years the industries that embraced EBITDA began to promote it as a more appropriate measure of earnings than net income.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- Homicide Police Probe Deaths of Canadian Billionaire and Wife
- Stocks Gain on U.S. Tax Plan; Treasuries Decline: Markets Wrap
- Death of CSX's New CEO Renews Debate on Health Disclosures
- Bitcoin Takes Bigger Wall Street Stage With Smooth CME Debut
- Bitcoin Climbs as Futures Debut Fails to Incite Attack by Shorts