Evaluate Company Earnings using EBIT and EBIDTA

EBIT and EBITDA are alternate measures of profitability to net income (or Earnings). These are accounting terms which attempt to represent cash profit generated by the company’s operations.What are Earnings?Earnings of a company are simply their net profits, after taking care of the inflow of revenue and all outflow of taxes, interest to be paid out, depreciation of assets etc. Earnings are the