Question

Why is EBITDA controversial?

Answer 1

EBITDA calculation o devevation from operating income EBITDA = Operating encome of depreciation charged For the year & Amortization charged for the years devevation from het profet EBITDA = Net profit & Taxes deducted t Interested paid a deprececton charges & Amortizaten charges EBITDA is controversal from the above mentioned formulas, we learn that Both the EBITDA calculations Shall diff er campantes use it strategically to show higher profits. Justify the They difference as the sale

OR huge assets or investment proflets. Companies also scoltch between methods in alternative years to show growth in profess