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Explaining EBITDA

HardFinance & Accounting00:00
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Your question is Explaining EBITDA. Take a moment with it on the right.

Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).

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Problem

Do you know what EBITDA is?

Please define EBITDA, expand the acronym, explain how it differs from operating income and net income, and describe why finance teams and investors use it. Clarify one important limitation, including why EBITDA should not be treated as cash flow.