CTL: The EBITDA Storytelling Challenge

NOTE: This exercise complements our blog post on EBIT vs EBITDA.

This challenge asks you to interpret financial data, identify what's driving the differences, and consider what it means for business performance.

Some stories start with a spreadsheet. This one starts with a puzzle.

The Scenario

You’re comparing two companies in the same industry:

Both companies report the same EBITDA, but their EBIT is noticeably different. Why?

Your Challenge

Consider these questions:

• Why is Company A’s EBIT lower?
• What does the higher D&A figure suggest about Company A’s operations?
• Would you expect Company A to be capital-intensive or asset-light?
• What might this mean for future reinvestment needs?
• Is EBITDA still a fair comparison here—or is something being hidden?

This isn’t a math test. There are no right answers, just better questions. This is where financial structure becomes a business story.

Talk with a colleague: which company would you rather run—or invest in?

Want to Check Your Thinking?

Explore the Answer & Analysis →

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