EBITDA
Category: Finance
Also searched as: EBITDA
Definition (plain English)
EBITDA is earnings before interest, taxes, depreciation, and amortization. It is used as a proxy for operating performance and cash-generation capacity before capital structure and non-cash accounting effects.
Why it matters commercially
It directly affects how management reads profitability and growth quality, so board reporting and pricing decisions stay grounded in comparable numbers.
Example
Finance reviewed EBITDA at SKU level before approving pricing or promo changes for the next trading period.
Common mistake
Using EBITDA as headline performance without reconciling it to margin and cash outcomes.
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