Roland Frasier, an expert in the field of financial performance and marketing, explained the concept of EBITDA in a recent interview. Frasier also explains how using the EBITDA measurement in assessing a company's financial stability and health and in determining the true impact of financial decisions.

"EBITDA is a concept that uses revenue minus expenses to show net profit," says Frasier, on the web at http://www.quora.com/Roland-Frasier . "However, it is not as simple as 'money in minus money out,' which could give a false perspective on how various financial decisions have affected a company's growth. Expenses in this case actually excludes taxes, interests, depreciation and amortization. This allows a company to assess the fundament cost of its operations without inflating the expenses total."

EBITDA is used in situations in which someone wants to analyze and compare profitability between two different companies, for example. It eliminates the "shadow" effects of financing decisions and costs that have nothing to do with the company's performance. "For example, if you include taxes in a calculation of expenses, and taxes increase from one year to the next, you are getting a false picture of the company's performance," says Frasier. Instead, he recommends looking at pure expenses without the distraction of items over which the company has little or no control. "This allows business owners and others to assess the true direction of a company. When you are preparing for a corporate merger, a commercial sale or any other transaction in which the value of a company is important, you can easily find accurate information using this formula."

For more information visit http://newswire.net/newsroom/pr/00089522-roland-frasier-explains-ebitda.html

Roland Frasier offers financial advice to those considering mergers and acquisitions as well as to those who are simply seeking to protect their assets. He is the author of the book Asset Protection for Everyone.

About Roland Frasier:

Specializing in negotiation, copywriting, marketing strategies, mergers, acquisitions and exit strategies, Roland Frasier is one of the principals of Idea Incubator and Digital Marketer.

For More Information:
Roland Frasier
Idea Incubator LP
16400 Pacific Coast Highway, Suite 218
Huntington Beach, CA 92649
(713) 816-9749
[email protected]
https://www.youtube.com/watch?v=Bjdhc8EX080
http://rolandfrasieronline.com/