Comments on: Financing – Is it really worth it? http://www.rencarlton.com/Blog/2009/04/financing-%e2%80%93-is-it-really-worth-it/ Ren Carlton's Business Reality Blog Fri, 13 Jan 2012 15:36:51 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Vijay Raithatha http://www.rencarlton.com/Blog/2009/04/financing-%e2%80%93-is-it-really-worth-it/comment-page-1/#comment-26 Vijay Raithatha Thu, 14 Jan 2010 19:19:26 +0000 http://www.rencarlton.com/Blog/?p=73#comment-26 This article is spot on! I have always questioned the merits of businesses utilizing, and being judged on, EBITDA (Earnings before Interest Tax Depreciation and Ammortization). Clearly each of these expense lines (ITDA) needs to be covered (financed, expensed) from Operating Income / Net Profit, except tax (corporation tax) which is almost entirely related to, and self financed thru, profits if such profits are indeed made. This article is spot on!

I have always questioned the merits of businesses utilizing, and being judged on, EBITDA (Earnings before Interest Tax Depreciation and Ammortization). Clearly each of these expense lines (ITDA) needs to be covered (financed, expensed) from Operating Income / Net Profit, except tax (corporation tax) which is almost entirely related to, and self financed thru, profits if such profits are indeed made.

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