EBITDA is not a cash proxy

Although widely used for this purpose and even proposed by the alert systems (AQR and Crisis Code), theEBITDA it is not a cash proxy ie it is not an indicator of the company's ability to generate operating cash; to determine the operating cash flows in fact, it is also necessary to keep collection and payment times. The differences between EBITDA or Profit + Amortization and Amortization and Operating Cash Flow increase with the increase in collection and payment times; they coincide only in the remote hypothesis that the company makes payments and collections at the same time as receiving / sending the invoice.

After analyzing in detail how to build the Cash Flow Statement (see registration), during the webinar, together with Charles Serroni, long-time professional with strong experience in business analysis and evaluation, we analyze various business cases to show these differences and to understand which is the best indicator of the actual corporate financial balance.

Charles Serroni - DOCFIN



NOTE: The Leanus platform is constantly renewed and the individual functions are constantly updated. Some features shown in webinars may have consequences that were not yet available at the time of registration.