In the lexicon of finance, EBITDA stands for earnings before interest, tax, depreciation and amortisation. It is a commonly reported metric among companies and is sometimes used by management teams to make companies appear more profitable than they actually are. But making certain adjustments to a company’s earnings can still be useful in certain scenarios In this article, I explore when should investors, and when should they not, make adjustments to a company’s earnings. One scenario when it may be good to measure earnings before interest is when you are a bondholder. Bond holders need to see if a company has the capacity to pay its interest and earnings before interest is a good tool to measure profitability in this case.  Another situation to remove interest is when you are an equity investor (invested in the stock of the company) and want to make year-on-year comparisons. Interest expenses can...