Understanding EBITDA: A Key Financial Metric

EBITDA is a foundational metric in financial analysis but it's also one of the most misused.

This session is designed to help professionals at all levels understand EBITDA inside and out, so they can interpret financials more effectively and make smarter decisions.

At its core, EBITDA removes the effects of financing choices (interest), tax structures, and accounting policies related to depreciation and amortization. This makes it easier to compare profitability across companies and industries. By focusing on core operations, EBITDA offers a cleaner look at how well a company is performing before external and accounting-related factors come into play.

We begin by defining EBITDA and walking through the step-by-step calculation using data from a company's income statement. Participants will learn how to calculate EBITDA both directly (from earnings) and indirectly (from net income). We'll also explain common adjustments made to produce "Adjusted EBITDA" and why these adjustments matter in investor and lender evaluations.

Next, the session explores when EBITDA is most useful such as in comparing peer performance, valuing a business, or assessing operating margin trends. We'll also address when it becomes risky to rely on EBITDA too heavily. For example, since it excludes capital expenditures, changes in working capital, and interest payments, it can give a distorted view of liquidity or financial health.

Participants will learn how to reconcile EBITDA to other important metrics such as Net Income, Operating Income, and Free Cash Flow. We'll examine how EBITDA fits into valuation models (like enterprise value/EBITDA multiples), and what stakeholders look for when assessing EBITDA growth.

We'll also cover common warning signs such as rapidly growing EBITDA without corresponding cash flow, or overly aggressive adjustments to "normalize" earnings. Understanding the context behind EBITDA is just as important as the number itself.

Whether you're reviewing company financials, preparing for a funding round, analyzing credit risk, or building internal forecasts, this session will help you use EBITDA more effectively and responsibly.

Why should you Attend: EBITDA is everywhere from boardroom discussions to investor pitches but how many people truly understand what it tells us? Misinterpreting EBITDA can lead to flawed decisions, misjudged valuations, and missed financial risks. Whether you're involved in budgeting, strategic planning, lending, or investing, you need to know what EBITDA reveals and what it conceals.

This session is designed to make EBITDA understandable and actionable. You'll learn how to calculate it, when to use it, how to compare it across companies, and what red flags to watch for. Perfect for professionals in finance, accounting, business development, or entrepreneurship, this course will sharpen your financial toolkit and help you communicate financial performance with greater confidence.

Areas Covered in the Session:

• What EBITDA includes and what it leaves out
• What is EBITDA and why is it important?
• How to calculate EBITDA from the income statement
• Differences between EBITDA, Net Income, Operating Income, and Cash Flow
• When to use EBITDA (and when not to)
• Common EBITDA adjustments and "Adjusted EBITDA" explained
• EBITDA's role in valuation and financial modeling
• Red flags: when EBITDA growth may be misleading
• How EBITDA fits into credit analysis and investment decisions
• Real-world examples of EBITDA analysis in practice
• Understanding EBITDA in private equity and M&A scenarios
• Using EBITDA alongside other key financial metrics
• Practical tips for communicating EBITDA results clearly and accurately

• Anyone that works in a financial institution