What is EBITDA?
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Ravi Tolwani, DVM, PhD
dvmSUCCESS Vet Group
2019-03-24
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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.p.1