Income Statement - The Good and Bad of EBITDA

In this income statement lesson, Joe Knight talks about one of the key income statement measures used to determine the value of a company, EBITDA. EBITDA has a mixed history, starting as the number everyone on Wall Street watched to becoming a source of cooking the books and fraud.

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What You Will Learn

After viewing this lesson, you will be able to:

  • Define EBITDA
  • Explain why EBITDA is an important measure
  • Describe how EBITDA was used to cook the books