Operational Cash Flow

Operational cash flow or EBIDTA is an indicator that translates into Earnings Before Interest, Taxes, Depreciation and Amortization. This indicator is in fact a measure of the company's cash flow. This indicator is especially relevant for large companies with significant fixed assets, which have large amortization and depreciation costs. Also EBITDA does not factor in accounting procedures, taxes and interest charges thus revealing the debt coverage capacity of a company.