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Factoids |
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EBITDA "Earnings Before Interest, Taxes, Depreciation, and Amortization |
According to Investopedia
"EBITDA first came into common use with leveraged-buyouts in the 80s, where it
was used to indicate the ability of a company to service debt. As time passed,
it became popular in industries with expensive assets that had to be written
down over long periods of time." |
Learn More
EBITDA: The
Good, the Bad, and the Ugly - EBITDA is one of those terms that is
getting increased usage, but usually for the wrong reason. This article will
define it and discuss how it can be useful, but misleading. |
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In a filing with the SEC today,
Rent Way published information concerning the company's EBITDA and Adjusted
EDITDA from 1998 through March 2003.
The filing states that Rent Way management believes
presentation of EBITDA and Adjusted EBITDA provides useful
information regarding
the company's ability to service its debt and its ability to
generate cash for
other purposes, including for capital expenditures and working
capital.
Management also believes these measures provide investors and
creditors
additional information in assessing the company's business and
financial
performance in comparison to industry and other market
standards.
According to Rent Way, EBITDA for any period is defined as the sum of operating
income
plus depreciation of property and equipment and amortization of
goodwill and
other intangibles for that period.
The filing notes that EBITDA is not a measure of financial
performance under generally accepted accounting principles and
should not be considered a substitute for other financial
measures of performance.
Follow this link for the 8K containing the data
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