When using EBITDA instead of net income to measure a firm's operational characteristics, why are depreciation and amortization expense added back? Depreciation and amortization expense are superficial. Depreciation and amortization expense represent an insignificant cash outflow for a business. Depreciation and amortization expense represent expenses from an accounting standpoint but don't represent actual cash outflows. Depreciation and amortization expense are random numbers and can be ignored