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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!)

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  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


    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


    Egregious Bullshit Intended To Deceive Airheads


    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.

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