EBITDA represents a company’s earnings before interest, taxes, depreciation and amortisation. It is an accounting measure calculated using a company’s earnings, before interest expenses, taxes, depreciation and amortisation are subtracted, as a proxy for a company’s current operating profitability. Because the margin ignores the impacts of non-operating factors such as interest expenses, taxes, or intangible assets, the result is a metric that is a more accurate reflection of a firm’s operating profitability.