how is ebita useful 
ebita is considered by some to be a reliable indicator of how efficient a company s operations are some analysts use it to gauge profitability although doing so can be misleading because of the excluded expenses the bottom lineearnings before interest taxes and amortization ebita is one way analysts measure a company s efficiency profitability and value while it can be a useful tool it isn t always an accurate reflection of a business s financial situation most companies use earnings before interest taxes depreciation and amortization ebitda which is a more accurate financial picture but it also has the same limitations in that it hides true profitability by excluding these expenses 