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I don't think that's intuitive at all. If you lack any financial experience, merely looking at cash flow is going to be intimidating.
by klmadfejno 6y ago
I don't think that's intuitive at all. If you lack any financial experience, merely looking at cash flow is going to be intimidating.
- airstrike 6y agoThat's why you look at EBITDA and ignore the walk from Net Income to Cash Flow. If you're not looking at statements, all I'm saying is "EBITDA is the cash generated (i.e. the profit) before taxes or interest on loans"
- klmadfejno 6y agoInterest on loans varies wildly by industry though. EBITDA is certainly something on can reach a useful level of understanding on with a bit of effort, but it's hardly intuitive to someone who's never looked at financial statements before.