Earnings Before Interest, Taxes, Depreciation, and Amortization (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 manage its operational efficiency. By stripping away non-operational factors, EBITDA provides a clearer picture of a company's financial health and performance over time.