EBITDA vs Free Cash Flow: Choosing the Right Business Metric
There are many different ways to measure business profitability. Among these, two metrics often stand out and are frequently compared: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and Free Cash Flow (FCF). While both are used in the same business contexts, it is important to note that these metrics are not interchangeable. EBITDA and FCF offer unique insights; EBITDA reflects a business’ operational efficiency and consequent profitability, whereas FCF illustrates...