Revenue vs EBITDA

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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.

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Anonymous 0 Comments

ELI5.

Revenue = Sales = how much money obtained by selling stuff to customers.

EBITDA = Profits = how much money obtained from sales minus how much money spent to get those sales.

Comparing revenues across companies tells how LARGE a company is. Comparing revenues across time tells how much GROWTH a company is undergoing.

EBITDA tells roughly how EFFICIENTLY or EFFECTIVELY a company is in doing business.

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