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The term ebita means Earnings Before Interest, Taxes and Amortization. It is a way to judge profitability that ignores interest, taxes and amortization costs. When these elements are excluded, EBITA gives a better idea of how the business performs day to day. Comparing firms from different industries is something investors and analysts often do with this tool. On the other hand, EBITA involves depreciation which is more cautious compared to EBITDA. It allows you to review how the business can make profits through its day-to-day work.