Gross Profit vs EBITDA: Key Differences and Why They Matter for Investors
Analysts deduct this value from income when calculating EBITDA because companies may spend various amounts on amortization payments for prior loans. Examining the accounting records and keeping track of how many loans the business has taken out can be helpful when determining how much a company spends on amortization payments. To ensure that the business can repay any debts before paying additional fees, it may be helpful to look over its repayment strategies. Gross profit is used to calculate a [...]
