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Home>Courses>Fundamental Analysis for Traders>Lesson 5 of 9

Profitability: margins and EBITDA

Earnings before interest, taxes, depreciation, and amortisation: a profitability proxy.

Fundamental Analysis for Traders·Lesson 5 of 9

All lessons

By the end of this lesson you'll be able to:

  • 01Define EBITDA
  • 02Explain what it strips out
  • 03Know its main criticism
1

Step 1 · Read the guide

Read the guide first

Everything the quiz asks is covered in the linked guide. Read it, then answer the questions below.

What Is EBITDA? A Beginner's Guide for Traders
Key terms
EBITDAEBITFinancial RatiosFree Cash Flow

Step 2 · Take the quiz

Quick check

10 questions

Answer all 10, then check. Wrong answers show a hint and a link back to the guide.

  1. Question 01

    EBITDA stands for earnings before what?

  2. Question 02

    What is EBITDA often used as a proxy for?

  3. Question 03

    Compared with net profit, what does EBITDA do?

  4. Question 04

    EBITDA strips out depreciation, which is what?

  5. Question 05

    What is a common criticism of EBITDA?

  6. Question 06

    What is EV/EBITDA?

  7. Question 07

    How does EBIT differ from EBITDA?

  8. Question 08

    What may a firm with high EBITDA but heavy debt interest still do?

  9. Question 09

    EBITDA is popular because it lets you compare firms' what?

  10. Question 10

    What can relying only on EBITDA hide?

Answered 0 of 10 · pass 70% (7/10) to complete

Fundamental Analysis for Traders5 of 9
  1. Fundamental analysis basics
  2. EPS and the P/E ratio
  3. Key financial ratios
  4. Reading a balance sheet and cash flow
  5. →Profitability: margins and EBITDA
  6. Dividends and yield
  7. Inflation and prices
  8. Central banks and interest rates
  9. GDP, jobs, and the economy
  10. ⚑Final Assessment· 20 Q