However, there are times when operating income can differ from EBIT. EBITDA first came to prominence in the mid-1980s, whenleveraged buyoutinvestors examineddistressed companiesthat needed financialrestructuring. They used EBITDA to calculate quickly whether these companies could pay back the interest on these financed deals. While there is no legal requirement for companies to disclose their EBITDA, […]
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