Daily Current Affairs Article 13th January 2021: State-owned telecom companies BSNL and MTNL turned EBITDA positive in the first half of financial year 2020-21, demonstrating a marked improvement in performance within a year of approval of their revival plan.
EBITDA stands for Earnings before Interest, Taxes, Depreciation, and Amortization.
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It is a metric used to evaluate a company’s overall financial performance. EBITDA is a measure of profits.
EBITDA is now commonly used to compare the financial health of companies and to evaluate firms with different tax rates and depreciation policies.
Among its drawbacks, EBITDA is not a substitute for analysing a company's cash flow and can make a company look like it has more money to make interest payments than it really does.
EBITDA also ignores the quality of a company's earnings and can make it look cheaper than it really is.
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