what is a good ebida 
as a baseline a company s ebida must be positive if it hopes to achieve positive cashflow even then ebida adds back in depreciation and amortization so it is possible for a company to have a positive ebida and yet still lose money each period a company should strive to have an ebida high enough to sustain company growth as well as tracking what competitive company ebida s are to make sure their own is comparable the bottom lineebida is a measure of company earnings that considers operating profit depreciation amortization and interest companies use ebida to better understand their profitability as well as getting a gauge on how their earnings are after stripping away some financial accounting calculations that are not tied to cashflow ebida is very similar to ebitda though the latter also incorporates taxes 