Earnings Before Interest, Taxes, Depreciation, and Amortization, commonly known as EBITDA, is a financial metric used to evaluate a company's operating performance. It focuses on earnings generated from core business activities, excluding the effects of financing, tax strategies, and non-cash accounting items like depreciation and amortization. This makes it easier to compare profitability across different companies and industries. EBITDA is often used by investors and analysts to assess a company's ability to generate cash flow and its overall financial health. By stripping away non-operational factors, it provides a clearer picture of operational efficiency and profitability, helping stakeholders make informed decisions.