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The Shortcomings of EBITDA

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The Shortcomings of EBITDA

Despite its original focused intent, EBITDA is now overused and often subject to manipulation

Behind the Numbers
Apr 12, 2022
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The Shortcomings of EBITDA

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Going back to the 1980s and the initial wave of leveraged buyouts (LBOs), EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) became the go-to measure to determine how much debt …

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