What is EBITDA, Cash flow, Cash conversion rate

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Accepted Answer

EBITDA is a measure of a company's operating performance, Cash flow is the amount of cash generated or consumed by a company, Cash conversion rate is a measure of how efficiently a company converts its sales into cash.

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization
Cash flow is the net amount of cash being transferred into and out of a business
Cash conversion rate measures how well a company is able to turn its sales into cash
Example: Company A has EBITDA of $1 million, Cash flow of $500,000, and Cash conversion rate of 80%