What does EBITDA tell us about a company’s financial health?

EBITDA provides valuable insights into a company’s operational health by highlighting its ability to generate profits from its core business activities. It excludes non-operational elements like interest, taxes, depreciation, and amortisation, giving a clear view of a company’s operational earnings. While EBITDA is a powerful metric for assessing operational strength, it’s important to remember that it doesn’t provide a comprehensive picture of a company’s overall financial health, as it doesn’t consider all expenses or cash-related factors.