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What is EBITDA? How does it compare to operating income? Which is likely to be the largest? When is it inappropriate to use EBITDA for

  1. What is EBITDA? How does it compare to operating income? Which is likely to be the largest? 

  2. When is it inappropriate to use EBITDA for the evaluation of company leadership (e.g. CEO). Identify and discuss several liquidity ratios? Current ratio, quick ratio? 

  3. Can the quick ratio ever be greater than the current ratio? Profitability ratios? Gross margin?

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EBITDA stands for Earnings Before Interest Taxes Depreciation and Amortization It is a measure of a companys operating performance and is calculated b... blur-text-image

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