Let’s decode 💸

Here is one of the most misunderstood finance buzzwords: EBITDA.

It stands for Earnings Before Interest, Taxes, Depreciation & Amortization.

Sounds like a lot — but here’s the easy way to think about it:

👉 It’s your company’s earnings before the adult stuff hits.

No loans. No taxes. No asset wear & tear. Just clean, raw potential. 💰

You’re basically asking:

“What would this business make if it didn’t owe money, didn’t pay taxes, and its stuff didn’t age?”

Here’s what gets left out:

💳 Interest on debt (because debt never sleeps)

🧾 Taxes (they always find you)

🏚️ Depreciation & Amortization (the slow fade of assets)

📊 Formula:

EBITDA = Net Income + Interest + Taxes + D&A

🧠 Why care?

It shows how a business performs operationally — before outside stuff interferes. Investors love it because it strips away noise and shows the real engine under the hood.

So next time EBITDA shows up in a convo, flex that brain and drop the formula with a smirk. 😎

What’s one financial term you still want decoded? 👇

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