EBITDA Margin

EBITDA margin is a measure of a company's operating profit as a percentage of its revenue. Knowing the EBITDA margin allows for a comparison of one company's real performance to others in its industry.

The acronym EBITDA stands for earnings before interest, taxes, depreciation, and amortization.

📘

Formula

EBITDA Margin = (earnings before interest, tax, depreciation & amortization) / total revenue