EBITDA margin
EBITDA divided by revenue, showing how sales convert into operating earnings.
Plain languagePractical exampleConnected reading
01
What is it?
EBITDA divided by revenue, showing how sales convert into operating earnings.
02
Why does it matter?
It supports operating-efficiency comparisons across periods and peers.
03
How should it be read?
Consider product mix, inflation accounting and one-off adjustments.
04
Common mistake
Comparing margins across structurally different industries without context.
A simple example
Revenue of 100 million and EBITDA of 18 million imply an 18% EBITDA margin.