Time Quote by Charles T. Munger
““I think that, every time you see the word EBITDA, you should substitute the words "bullshit earnings.””
About This Quote
Source Speech: Public remarks, 2020
EBITDA is often used to mask true earnings quality, so it should be treated skeptically.
In simple terms: EBITDA can hide real profit problems.
Key Takeaway
Treat EBITDA numbers with caution.
Themes
finance
accounting
skepticism
Mood
analytical
critical
Type
financial
business
When to use this quote
- investment decisions
- financial reporting
- budgeting
- risk assessment
Key Concepts
financial analysis
valuation
corporate governance
Questions to Reflect On
- Do you adjust EBITDA?
- How do you assess earnings quality?
A Different Perspective
EBITDA may still be useful if adjusted properly.
