I'm the manager of gurufocus. Please create a EBITDA explanation video for gurufocus users. Please make it easy to understand and fun to watch. Here is a reference forAmazon.com (AMZN) EBITDA https://www.gurufocus.com/term/ebitda/AMZN

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Hey GuruFocus users! Ever look at a company's financials and see 'EBITDA' and wonder... what is that? And why should I care? Well, you're in the right place! Today, we're breaking down EBITDA and showing you why it's a super useful tool in your investing toolkit, especially right here on GuruFocus! Let's dive in! Okay, let's decode the acronym. EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. Think of 'Earnings' as the company's profit starting point, usually Net Income. Then, we add back four things: Interest expenses, which is money paid on debt; Taxes, money paid to the government; Depreciation, the cost of physical assets wearing out over time; and Amortization, the cost of intangible assets like patents wearing out. So, it's basically Net Income, plus those four items we just took out. Why go through the trouble of adding these back? Because EBITDA gives us a clearer picture of a company's operational profitability – how well it's making money from its core business activities. Interest expenses depend on how much debt a company has. Taxes depend on tax laws and where the company operates. Depreciation and Amortization depend on how many assets the company owns and how it accounts for them. These four things can vary wildly between companies, even if their core business is doing great! By adding them back, EBITDA helps us compare companies on a more level playing field, regardless of their debt, tax situation, or asset base. Now, how do you use this on GuruFocus? It's super easy! Just go to any company's summary page, scroll down or look for the 'Financials' section, and you'll find EBITDA listed as a key metric. GuruFocus provides historical EBITDA data in charts and tables, like you see here for Amazon. You can see how a company's operational profitability has trended over time. You can also find related metrics like EBITDA Margin, which shows EBITDA as a percentage of revenue – a great way to see how efficient the core business is. EBITDA is powerful, but it's not perfect. Remember, it's just one metric. Pros: Great for comparing operational performance, removes distortions from financing, taxes, and accounting choices. Cons: It's not a GAAP measure, so companies can calculate it slightly differently. It ignores capital expenditures, which are essential for many businesses. It doesn't show the actual cash available to shareholders after paying interest, taxes, and reinvesting in the business. So there you have it! EBITDA – a key metric for understanding operational profitability. Use it on GuruFocus to compare companies and analyze trends, but always look at EBITDA alongside other metrics for a complete view. Thanks for watching GuruFocus! Happy investing!