Supporters of EBITDA as a measure argue that it is a good approximation for operating cash flow because it adds back depreciation and amortization, which are often major non-cash items.The company has managed in three years to boost sales by nearly 400 percent while dramatically increasing both EBITDA and owners' compensation.EBITDA is the amount of profit that a person or company receives before interest, taxes, depreciation, and amortization have been deducted.
