Classic question: what is the difference between EBIT and EBITDA?

Earnings before interest and taxes. It is operating profit after depreciation and amortization.

Earnings before interest, taxes, depreciation, and amortization. It approximates pre-capex operating cash earnings, but it is not cash flow.

D&A.
```
EBITDA = EBIT + D&A
```

EBITDA is common for valuation and leverage because it is less affected by depreciation policies. EBIT is closer to operating profit after asset consumption.