EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortization, and is used to measure a company’s financial performance. It indicates the company’s operational earnings before taking into account taxes, finance costs and capital structure. In other words, it is a way of measuring how much money a business makes before considering interest expenses, taxes or amortization or depreciation of assets. EBITDA can be a useful tool for analyzing companies because it strips away the effect of certain one-time events or factors that are not relevant to the day-to-day running of the company.