"EBITDA Positive" A Misleading Metric?

EBIDTA is a bullshit earnings .
—Warren buffet

Bro isn’t it like gross profit???

Why do only few companies in screener show NPA? Why not all?

I am sure all the investors are aware of the difference

But this is unique to Startups.

That is because none of them are operationally profitable for a long time.

So operational profitability becomes the first goal.

That is what Ebitda stands for

This thing strongly depends on weather the 'T' in bitda, means GST too?
If not, then Zomato is ok. Because a company like Zomato does not actually have any hard assets. Things like laptops for employees is only a fraction of money paid to each employee every month.

Im covid positive..

You should not focus on "EBITDA position " but on "Adjustment EBITDA" real manipulation is there.

There is a difference between EBITDA and Adjusted EBITDA...

He just mention valuation game can be fraud if u really interested in investing u need to ground reality

Misleading content. EBITDA shows how well the business is operating because different company in the same industries can borrrow money at different rates, have different amount of depreciation and taxes

However, the real game is how well they are at reducing the operating costs and because these cost would be mostly similar for the companies operating in the particular industries (lets say Zomato & Swiggy). For valautions Most important factor is EBITDA.

we must apprecite you for you're editing skills are top notch. But be mindful while posting such videos.

Can someone explain what a “crore” is?

We need PAT improvement YoY growth

And cash at bank as well

Please don’t educate people with incomplete information dude, rather if you would have just explained what EBITDA means, it would have been more useful

What is amortization?

WTF did I just saw😂😂😂

Very misleading! EBITDA has its own interpretation

Even if you replace the machinery your depreciation would still be the same.

You need to make yourself more aware about the significance of these terms. Dont just go out misleading people about key indicators in financial world. For example the depreciation cost as mentioned is the expense already made by the company and thus it has to be looked upon as a free cash flow to the company ( which is a positive thing). I hope it will help you in creating better content next time.

Bruh, these finfluencers really do be reading anything on the internet and blabbering on the internet without any knowledge. Don't know how he got the guts to say EBIDTA is not a good indicator of how a company is performing. It is as important as Profit After Tax which we call Net Profit. EBITDA shows how a company is operating. It shows the real margin value of the revenues.

EBIDTA is important in the long term. People don't know much 😅😅

😂😂 bullshit ek dam

PAT is reality, Sales is Vanity, any thing in between is zoomla, absolute zommla

Market ka naya chomu😂

Only person who is misleading is you 😂
EBITDA is by definition is before interest and tax.

6.21 🤣🤣🤣

Students with 11th commerce stream would say - oh yes!

Net profit is not the real earnings of any company as it includes extraordinary items like depreciation that is why EBITA is considered a better option to look for operational efficiencies.

Idiotic content

learning more from the comments section than ur poorly researched video 😂🤡🐷 L + bozo + ratio

Bruh anybody who studies finance and has a lil knowledge abt finance know this

Talk about vestige and gautam bali

Why would you manipulate to show you are profitable when you have to pay tax for it.

Ebitda shows raw earning power of the company and consistency in profit is calculated by it
What you said is mostly wrong

Didn't Zomato declare PAT of 2Cr?

Bhai, ICAI ko bolke hatwa do reporting standards se. Tum ICAI chairman hi ban jao

EBITDA is important to understand whether business model is viable or not. Do some study

Profit after taxes still won't show the true value... Only P and L can.

Ebitda is good but Adjusted Ebitda is misleading

Learn Icai Fair value madarchod

EBITDA is a proxy of operating cash flows. that's why it's much more important than PAT

Just gave exam sem 6 bcom

EBITDA is useful for the management to control business operational parameters such as cash flows, inventory, expenses, pricing etc.

Tax, amortization etc are generally not in control of the management, hence they are not considered for ease of calculation.

Right

EBITDA is actually a lot useful😂😂

Bro plz stop pretending to be intellectual when ur not...

😊

This is so misleading. Please educate yourself first

Wp se phada hua h ye