What is EBITDA? What is the importance? Financial analysis case study.

Microsoft has witnessed considerable growth in revenue, EBITDA, net income, EPS, etc., over the last five financial years. Despite the global pandemic in 2020, Microsoft experienced significant growth in its cloud services, with Azure revenue increasing by over 50%. The company also benefited from the widespread shift to remote work, driving demand for Teams, Office 365, and Windows Virtual Desktop.

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric used to evaluate a company’s operating performance.

Earnings: Net profit or income.
Before: Excluding certain items.
Interest: Costs associated with borrowing or debt.
Taxes: Government levies on income.
Depreciation: Reduction in the value of tangible assets over time.
Amortization: Reduction in the value of intangible assets over time.

#koredealayaki #financialanalyst #financialanalysis #ebitda