Hari
1.EBITDA is nothing but operational profitability of a company.
2.CAPEX as such doesnot have any impact on EBITDA.As the name suggests EBITDA means Earnings before interest,taxes,DEPRECIATION and amortization.
3.CAPEX gets reflected in Income Statement through Depreciation.But EBITDA is before Depreciation.
4.That is why there are arguments saying that EBITDA is not a very good metric in comparing the financials of 2 or more companies.
Dec 15 2013 08:28 PM