EBITDA AnalysisEBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
EBITDA Over Time Pattern
About EBITDAIn a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
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Netflix EBITDA Assessment
According to company disclosure Netflix reported earnings before interest,tax, depreciation and amortization of 1.71B. This is much higher than that of the Consumer Cyclical sector, and significantly higher than that of Media - Diversified industry, The EBITDA for all stocks is over 1000% lower than the firm.