What is Ebitda?  Whilst the acronym stands for earnings before interest, tax, depreciation & amortisation; ebitda can be thought of as essentially as the cash flowing into a company.  Capital expenditure (capex) is the extra item that needs to be subtracted from ebitda (as well as interest, tax, depreciation & amortisation) in order to arrive at earnings which remain to pay down debt and also be divided amongst shareholders as dividends.  Any money left is kept by the company as retained earnings and goes towards boosting the company’s Net Asset Value.