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.

Related ratios

• Gross margin (%)
• Operating margin (%)
• Profit margin (%)