Podcast Sponsor

Is EBITDA the Right Metric for Your Business Growth?

Tracking the right financial metrics is essential for every business owner, especially those considering a future sale or aiming to grow their company’s value. One key metric that stands out in the world of business evaluation is EBITDA—Earnings Before Interest, Taxes, Depreciation, and Amortization. In this episode of the $4M Strategies™ podcast, Carl J. Cox, CEO of 40 Strategy & 40 Accounting, explains why EBITDA is more than just a financial term; it’s a practical tool for assessing operational health and setting your business up for success.

Why EBITDA Matters

EBITDA provides a clear picture of your business’s operational efficiency by focusing on core profitability. Unlike revenue or net income, it removes external factors like financing and investment, giving a straightforward view of your earnings.

How to Calculate EBITDA

Carl walks listeners through the simple steps to calculate EBITDA: start with your net income, then add back interest, taxes, depreciation, and amortization. This calculation helps you understand your business’s true performance.

Real-World Implications of EBITDA

Carl shares a client story that illustrates the impact of tracking EBITDA. By shifting focus from revenue to EBITDA, the client discovered their business was worth more than they initially thought, providing a stronger position when approaching potential buyers.

Whether you’re actively looking to sell or just want a stronger grasp of your company’s worth, EBITDA is a metric you can’t ignore. Listen to the full episode, start tracking today, and prepare for smarter decisions in the future.

Listen now to the full episode and start applying these insights to your business! 

Subscribe and set notifications to our YouTube Channel. 

Podcast Sponsor: Oswego Private Wealth Management

Listener Feedback: