EBITDA and EBIT "flow to both debt and equity holders". What does it mean to flow to debt?
Why is it that EBIT or EBITDA flow to debt and equity holders while net income flows only to equity holders?
Why is it that EBIT or EBITDA flow to debt and equity holders while net income flows only to equity holders?
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EBITDA and EBIT are pre-interest, meaning a portion of it gets paid to debt holders as interest. Unlevered metric.
Net income is after interest is paid, so is only paid to equity holders.
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