EBITDA - Earnings before Interest, Taxes, Depreciation, Amortisation.
Can you please tell me the implications to either the profit and loss, cashflow or balance sheet of using EBITDA as an evaluating tool if you buy you acquire your ompany cars via Contract Hire (rental) as opposed to outright purchase.
It is claimed (somewhat losely) that by charging a rental to the profit and loss rather than owning the assets and depreciating it is a negative for anyone of the three: P&L, cashflow, Balance Sheet.
Can anyone please help and state the facts on this matter.
Simon Berger