Posted by HakchainFrens > 2016-05-27 05:56 | Report Abuse

Use ebit better than ebitda. Depreciation and amortization is part of operation so ebit is better

Posted by shinado > 2016-05-27 08:36 | Report Abuse

Charlie Munger once said this about EBITDA:

“I think that, every time you see the word EBITDA, you should substitute the word ‘bullshit’ earnings.”

http://www.forbes.com/sites/brentbeshore/2014/11/13/ebitda-is-bs-earnings/#2c216cb1494c

Nonetheless, your article here is a good read. Thanks.

Posted by Ricky Yeo > 2016-05-27 09:46 | Report Abuse

It depends what you want to measure. For example if you want to measure how a company can serve interest payment when it is not reinvesting money into the business, EBITDA to interest coverage is what ppl look at.

Posted by Wan Zuhdi > 2016-05-27 12:18 | Report Abuse

thanks for the link shinado. good read as well.