EBITDA stands for earnings before interest, taxes, depreciation and amortization. EBITDA is an indicator of a company's financial performance and is used as a proxy for the earning potential of a business, although doing so has its drawbacks. In addition, EBITDA excludes the cost of debt capital and its tax effects by adding interest and taxes to income.
This term is not part of the income statement, however, it is related to it. It is an indicator that approximates the capacity of a company to generate profits, only its productive activity is considered, in this way eliminating or separating the effect of debt.
The Sales Glossary is a compendium of all the most commonly used terminology in sales strategy. Many of the concepts listed here are used when implementing a CRM system or a digital sales funnel, no matter if they are legacy systems or an online CRM. See also our blog that deals with sales techniques, marketing and sales culture.