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E
Earnings Before Interest, Taxes, Depreciation, And Amortization (EBITDA)

Calculating EBITDA is done to assess the financial performance of a company. While EBITDA is not accepted under US GAAP, it is often found useful for measuring profitability because it allows some flexibility in the variables and leaves out the complicated impact of finance and accounting decisions. A particular EBITDA value can be the corporate goal used in a performance share plan to trigger the vesting or payout of the shares.

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