Precise Finances

09/09/2026

Are you overwhelmed with your books or finding it difficult to keep up with the financial side of your business?
From Data~> to decisions!
I provide bookkeeping and accounting services for businesses both large and small, helping you stay organized, accurate, and confident in your numbers. Feel free to reach out to get your data in line before the end of the year!

06/16/2026

Excited to share that I've officially earned my Financial Statement Modeling certification from Wall Street Prep! Grateful for the opportunity to continue building my skills in finance. The learning never stops! 📊

Excited to share that I've officially earned my Financial Statement Modeling certification from Wall Street Prep! Grateful for the opportunity to continue building my skills in finance. The learning never stops! 📊

12/20/2025

EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation & Amortization.

EBITDA is a major financial indicator used to evaluate companies' profitability with different capital structures.

EBITDA is a rough guide to show how much cash a business generates.

Calculating EBITDA requires information from the company's Income Statement and Cash Flow Statement.

Here's one way to do it:

Net Income
+ Interest Expense (Income Statement)
+ Taxes (Income Statement)
+ Depreciation (Cash Flow Statement)
+ Amortization (Cash Flow Statement)

Some investors love EBITDA. Others despise it.

EBITDA does not consider all business activities, so it might overstate cash flow.

Charlie Munger calls EBITDA "Bullsh*t Earnings"

Why? Because it ignores depreciation as an expense.

Depreciation is when a tangible asset's value is gradually reduced over time to account for wear and tear.

The equipment will eventually be replaced, so depreciation is an actual expense. This is why ignoring it when calculating profits can be a big mistake.

Buffett & Munger prefer to look at EBT -- Earnings Before Taxes.

This allows them to compare the earnings yield on a business to the earnings yield on bonds (which is also a pre-tax number).

Do you use EBITDA? Let me know in the comments below!