Sunday 22 January 2017 The one stop source for free breaking news, expert analysis, and videos on AIM and LSE listed shares


Reader Competition: what does EBITDA stand for?

By Nigel Somerville, the Deputy Sheriff of AIM | Tuesday 5 April 2016


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


We all know that on the world's most successful growth market EBITDA is a popular way to dress up bad numbers as good ones. But what do those letters really stand for? Post your answers in the comments section below.

There is the old epithet from Warren Buffett (or Buffet, for those who wish to dine out on thier expertise) that EBITDA is for directors either to delude thair shareholders or themselves. Here on ShareProphets, we tend to regard EBITDA as "bullshit earnings" as the number ignores a stack of costs which are real.

But not being an accountant, I really want to understand this metric as best I can. So what might those letters stand for?

For what it is worth, my entry is Earnings Bullshit Intended To Delude All.

I'm sure you can do better so please post your offerings in the comments section, deadline Friday (after-hours, natch!)


Filed under:



This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.


Comments

20 comments

  1. Ethically Benign Improvisation of Total Dross Accounting

  2. Easy Bonus (for board) If Totally Delicious Announcement

  3. Economic Bollocks In Terms Deceiving All


  4. Jonathan Capper

    EBITDA is for wimps.

    To get a real flavour of how dire a Companies prospects are look for adjusted EBITDA.

    Look at BLNX.

  5. Erroneous bollocks in totally deceiving accounts

  6. Every Bit of Income to Totally Drown Accruals

  7. Everything But Information To Do Analysis


  8. Nigel Somerville

    Or even adjusted underlying core EBITDA!

  9. Every body invents the data again


  10. JASPERTHERDOG

    Erroneous Balances Intended To Divert Attention

  11. Earnings Brown In Toilet, Dung Actually

  12. Earnings Before Interested Tom Demolished Accounting


  13. Gareth Jones

    Economically bloated information to divert attention


  14. SHOW ME THE CASH

    Egregious Bullshit Intended To Deceive Airheads


  15. SHOW ME THE CASH

    Earnings Bloodbath In Truth. Disguise Appropriately.


  16. Drunken Sailor

    Egregious Buffoonery Invented To Dissemble Atrocities


  17. Bob the Brush

    Earnings Blatantly Inflated To Deceive All

  18. Elephant bollocks invented to delude accountants

  19. Excrement Blasted Insidiously To Disguise All


  20. BobbyChariot

    Easily bewildered idiots take dick again

    For the BBM’s.


Enter your comment below. Fields marked * are required. You must preview your comment first before finally posting.




Site by Everywhen