EBITDA is a widely used measure of a company’s operational efficiency, offering insight into its ability to generate profits before accounting for financial and non-cash expenses. Investors and analysts use EBITDA to compare profitability across companies by removing the impact of financing and accounting decisions. A high EBITDA value generally indicates strong operational performance, while a declining EBITDA may suggest financial or operational challenges. Many valuation multiples, such as EV/EBITDA, rely on this metric to assess corporate value.