Let's discuss the definition of EBITDA is earnings before interest, tax, depreciation, and amortization.
EBITDA really stands for profit to the veterinary practice or cash flow from operations and the key word here is cash flow from operations.
This is equal to the revenue the hospital produces on a yearly basis minus all of the expenses from operations and what's left is the cash flow to the business or EBITDA.
EBITDA is a key metric as it's used as a primary metric for veterinary practice valuations.
Definition of EBITDA. EBITDA stands for profit from operations of veterinary hospitals. It represents Earnings Before Interest Taxes Depreciation and Amortization. Your hospital EBITDA during the past 12 months is a significant key metric for determining valuation.