EBITDA is usually defined to just mean operating income even though it doesn't literally represent that. It's still a useful metric to focus on, particularly because it enables us to include all of the operating expenses. And two, it does allow us to strip out things that just might not be related to the company's core performance such as interest, taxes,. Other gains and losses or potentially one-time items that fall between operating income and net income.
What’s the point of reading a company’s earnings report? Can’t AI do that job? Patrick Badolato, PhD, CPA is an Associate Professor at The University of Texas at Austin, McCombs School of Business where he teaches accounting and financial statement analysis. Badolato joined Ricky Mulvey to discuss: - How Walmart, Rent the Runway, and Peloton adjust earnings (and what it means for shareholders) - Why investors should follow a company’s operating income - The pros and pitfalls of GAAP metrics - A better way to count stock-based comp. Companies Discussed: WMT, RENT, PTON Host: Ricky Mulvey Guest: Patrick Badolato Engineer: Tim Sparks
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