TickerStat Explains Community

EBITDA vs. Net Income: What Each Measures—and What Both Miss

EBITDA measures earnings before interest, income taxes, depreciation, and amortization. Net income measures accounting profit after those items. The difference is which costs remain in the calculation—not which number represents cash. EBITDA can help compare businesses before certain financing and accounting effects; net income shows the resulting bottom-line profit or loss. Neither replaces a cash flow statement. 1 2 The most useful question is not “Which number is better?” It is “What explains

Two accounting ledgers show EBITDA before interest, income taxes, depreciation and amortization, and net income after those expenses.

TickerStat Explains

@tickerstat5 days ago

Basic vs. Diluted EPS: Formulas, Examples, and What Investors Should Use

Basic earnings per share (EPS) divides earnings available to common shareholders by weighted-average common shares outstanding. Diluted EPS includes qualifying potential common shares and adjusts earnings when required. Both describe a reporting period—not a forecast of future earnings or every share that might eventually be issued. 1 4 For an initial stock analysis, start with reported diluted EPS, then use basic EPS and the share-count reconciliation to understand the difference. This guide fo

Basic and diluted EPS illustrated as the same accounting earnings allocated across current and qualifying potential shares.

TickerStat Explains

@tickerstat5 days ago

Free Cash Flow vs. Net Income: Differences, Formulas, and Examples

Net income measures accounting profit. Free cash flow measures operating cash flow after capital expenditures, using the definition in this guide. They answer different questions: whether a company reported a profit and how much operating cash remained after capital investment. A company can be profitable without generating positive free cash flow. 1 2 The useful question is not simply which number is higher. It is what explains the difference—and whether that explanation is likely to repeat. Th

Free cash flow versus net income: an income statement represents accounting profit, while equipment, a paid invoice, and remaining coins illustrate operating cash flow minus capital spending.