EBITDA is not your Cash Flow

EBITDA is not your friend.

Sure, it’s a widely accepted metric, but it can’t give you the full financial picture of your business.

Here’s why 👇

EBITDA ignores critical factors like:

• CapEx
• Working capital
• and Debt payments—

areas that directly impact cash flow.

This means:

→ You could be low on cash while EBITDA looks fine.
→ Debt payments & CapEx don’t show up but drain cash.

The takeaway?

While EBITDA is great for understanding operational performance, it’s no replacement for tracking cash flow.

Want a true snapshot of financial health?

Always consider both EBITDA and cash flow.

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