EBITDA


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Related to EBITDA: amortization, EBITDA Margin

EBITDA

(Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become widely used in high tech and other industries whenever it is desired to disclose more favorable numbers to the public at the moment.
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References in periodicals archive ?
EBITDA and Adjusted EBITDA are also financial metrics used by management (i) as a supplemental internal measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; (ii) to compare to the EBITDA and Adjusted EBITDA of other companies when evaluating potential acquisitions and (iii) to assess our ability to service existing fixed charges and incur additional indebtedness.
* The Company generated $652 million of free cash flow, which represents a decline of 26.5% y/y (H1 2018: $887 million) mainly reflecting EBITDA decline and CAPEX growth y/y.
It achieved the best quarterly result in the company's history in terms of sales and EBITDA pre exceptionals.
For one, Ebitda does not consider the financial risk of the company by including interest expense as part of its earnings.
2018 Results Significantly Weaker than Expected: Mattel's 1H18 EBITDA declined to negative $142 million from breakeven in 1H17 despite early progress on cost reduction efforts (SG&A was down 3% compared with 2017).
EBITDA pre exceptionals improved significantly by 14 percent to EUR 375 million, compared with EUR 328 million in the prior-year quarter.
In addition, improvement to EBITDA was fuelled particularly by growth in net sales from services and improved cost-efficiency and further, its operative investments decreased to 15.0% of net sales.
Strong adjusted EBITDA growth resulted in a 15.8% increase in profit attributable to owners of the Company before separately disclosed items on a like-for-like basis but on a reported basis earnings remained flat (-0.3%).
EBITDA for the quarter reached KD 104 million ($344 million), down 21% Y-o-Y in KD terms, reflecting an EBITDA margin of 40%.
Free Cash Flow and Free Cash Flow Dividend Payout Ratio Dollars in millions Three Months Ended March 31, 2017 2016 Net cash provided by operating activities $ 9,218 $ 7,900 Less: Capital expenditures (6,015) (4,669) Free Cash Flow 3,203 3,231 Less: Dividends paid (3,009) (2,947) Free Cash Flow after Dividends $ 194 $ 284 Free Cash Flow Dividend Payout Ratio 93.9% 91.2% EBITDA