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REDDIT

How is EBITDA a good indication of a companies health?

E
Mar 31, 2025 · 15:49

Hi all,

I have read CHATGPT explanation as well as a few websites explanations. However I am still struggling to understand how looking at the EBITDA is a good indication of a companies health.

If I wanted to look at how profitable a company is, wouldn't looking at their NET be the best thing? Even taking into consideration that different companies write-off different things (e.g. two companies - one owns building the other does not).

Thanks all!