In the notes, the term 'Cleaning' EBITDA is said to correspond to which metric?

In the notes, the term 'Cleaning' EBITDA is said to correspond to which metric?

• A. Net income.
• B. Gross profit.
• C. Operating cash flow.
• D. Earnings before interest and taxes.

Answer: (A)

Cleaning EBITDA refers to normalizing earnings by stripping away irregular, non-operating, and one-off items so the figure reflects profitability closer to the bottom line. When these distortions are removed, the result mirrors net income, which is the actual profitability after all costs and adjustments. In other words, the cleaned version of EBITDA is meant to align with net income, capturing the same economic result after normalization. Gross profit ignores many operating costs beyond COGS; operating cash flow reflects cash effects and can be far from profitability due to working capital and non-cash items; EBIT/EBITDA are different stages of profitability, but the cleaning process is aimed at aligning with the net income outcome. So the correspondence is to net income.

Cleaning EBITDA refers to normalizing earnings by stripping away irregular, non-operating, and one-off items so the figure reflects profitability closer to the bottom line. When these distortions are removed, the result mirrors net income, which is the actual profitability after all costs and adjustments. In other words, the cleaned version of EBITDA is meant to align with net income, capturing the same economic result after normalization. Gross profit ignores many operating costs beyond COGS; operating cash flow reflects cash effects and can be far from profitability due to working capital and non-cash items; EBIT/EBITDA are different stages of profitability, but the cleaning process is aimed at aligning with the net income outcome. So the correspondence is to net income.