EBITDA Margin

外汇网2021-06-19 15:58:39 140

A measurement of a company's operating profitability. It is equal to earnings before interest, tax, depciation and amortization (EBITDA) pided by total revenue. Because EBITDA excludes depciation and amortization, EBITDA margin can provide an investor with a cleaner view of a company's core profitability.

Taobiz explains EBITDA Margin

A firm with revenue totalling $125,000 and EBITDA of $15,000 would have an EBITDA margin of $15,000/$125,000 = 12%. The higher the EBITDA margin, the less operating expenses eat into a company's bottom line, leading to a more profitable operation.

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