I found myself studying multiple P&L’s where EBITDA kept popping up. I asked the owners what EBITDA meant to them and why it was prominently displayed in their internal reporting.
“I don’t know,” said one of the owners. “We just do. The prior CFO said it was important.”
I probed more trying to get him to explain the importance of EBITDA. He didn’t have an answer. Nor did the other owners.
EBITDA has been deep sixed in this amazing, growing business.