What is EBITDA? - The Meaning & How to Calculate

Across the dizzying array of financial jargon, it's likely you've come across the term EBITDA. But what exactly does EBITDA stand for? And what does it represent for your company?

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Throughout this article, we'll take a look at how you can calculate EBITDA and how it can be used to manage your business' finances more effectively. Whether you're preparing financial statements under ASPE (Accounting Standards for Private Enterprises) or IFRS, understanding EBITDA is essential for Canadian business owners seeking financing from lenders like the Business Development Bank of Canada (BDC) or traditional financial institutions such as TD, RBC, or Scotiabank.