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EBIDTA stands for Earnings Before Interest, Depreciation, Taxes, and Amortization. EBIDTA is a value used in accounting that represents a business’ operating profitability.  It is calculated by using a company’s net earnings, before interest expenses, taxes, depreciation, and amortization are subtracted. While EBIDTA is not a direct representation of cash flow, negative EBIDTA for sure means that there are serious cash flow issues at the time or in the future. While there are many reasons and agendas for its use, one of the reasons for EBIDTA in the casino business is that it reduces the effect of differing regional taxes on total performance.

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