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EBITDA

Basically, investors stress on cash management, net income and revenues as the basic criteria for corporate feasibility and health. From few years another criteria has been in focus for quarterly reports and accounting. That is Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA). To ascertain and compare profitability between companies and industries EBITDA can be used in a effective way. The Measure of EBITDA has gained in popularity in accounting process in many companies, still there should be some restraint in using it as a measure of company profitability.

EBITDA

The companies are not obliged by any legal authority government or otherwise to publicise or disclose the EBITDA of the company, According to Government authorities of generally accepted accounting principles, EBITDA can be ascertained and used in companys financial statements and inform the investors aswell though its not a compulsory requirement.