DECA Financial Consulting Practice Exam 2025 - Free DECA Financial Consulting Practice Questions and Study Guide

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What does EBITDA stand for?

Earnings Before Interest, Taxes, Depreciation, and Amortization

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. This financial metric is crucial because it provides a clear view of a company's operational performance by focusing on earnings generated from core business activities without the impacts of capital structure, tax rates, and non-cash accounting items like depreciation and amortization.

Using EBITDA helps stakeholders, including investors and analysts, to evaluate the company's profitability and cash-generating ability while allowing for a more straightforward comparison across companies and industries, particularly when there are significant differences in capital structure or tax situations. This metric is widely used for assessing overall financial health and operational efficiency, making it an essential tool in financial consulting and analysis.

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Equity Before Interest, Taxes, Depreciation, and Amortization

Earnings Before Income, Taxes, Depreciation, and Assets

Equity Before Income, Taxes, Depreciation, and Assets

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