What is ebitda and adjusted Ebitda? Which one is better for financial analysis? Leverage ratios and their ideal ratios?

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EBITDA is a measure of a company's operating performance, while adjusted EBITDA excludes certain one-time expenses. Leverage ratios indicate a company's ability to meet its financial obligations.

EBITDA stands for earnings before interest, taxes, depreciation, and amortization
Adjusted EBITDA is EBITDA adjusted for specific items such as restructuring costs or one-time expenses
EBITDA is commonly used to evaluate a company's profitability and operating performance
Adjusted EBITDA provides a clearer picture of a company's ongoing operational performance by excluding irregular items
Leverage ratios like debt-to-equity ratio and interest coverage ratio help assess a company's financial risk and ability to meet debt obligations
Ideal leverage ratios vary by industry, but generally lower ratios indicate less financial risk

What is ebitda and adjusted Ebitda? Which one is better for financial analysis? Leverage ratios and their ideal ratios?

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