In true eli5 way, please can someone explain the difference between Revenu and EBITDA, and, when you would want to use/assess one rather than the other.
In: 107
Let’s assume you can borrow your dads car but have to pay for gas. Now some of your friends want to go with you somewhere and you want to know how much gas money you need to ask. It’s simple. It’s the cost of petrol decided by the amount of people. Let’s say 4 friends $5 each. You payed 10 for gas. This $10 is youre left with us your ebidta.
Now your dad doesn’t want to lend his car anymore. You saved some money and bought your own car. You’re still asking them each the $20. Because your cost is different, you want to have a different way of calculating wat it is a coating you.
Your revenue is $20 (what you ‘earned’)
Your ebidta is still $10.
But you have to pay for the car depreciation as well. Let’s say your car depreciated 5$ during that trip. This means that your profit is $10-5 = $5.
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