EBITDA Margin (%)
EBITDA Margin = EBITDA/Turnover.
EBITDA = Profit before interest expenses, taxes, depreciations and amortisations.
EBITDA margin shows the company's EBITDA in relation to sales.
Things to keep in mind
- A higher margin is usually positive as it shows that the company is increasing its earnings against its Turnover.
- Industries with large costs often have a low EBITDA Margin.