EBITDA Explained to ChildrenPublished on July 22, 2009 at 4:31 pm
I have always found the definition of EBITDA (earnings before interest, taxes, depreciation, and amortization) expressed by Berkshire Hathaway Vice Chairman Charlie Munger to be the most accurate: “I think that, every time you see the word EBITDA, you should substitute the words “bullshit earnings”. (Poor Charlie’s Almanack, Page 120)
In the entertaining video shown bellow, CNN’s Jim Boulden translates the concept of EBITDA into plain English in a manner that even a classroom of small children can appreciate. Enjoy!
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