EBITDA Margin

What is EBITDA Margin?

EBITDA margin is a measure of profitability as a percentage of revenue. The formula is as follows:

EBITDA / Total Revenue

EBIDTA is an indicator of the financial performance of a company. It is useful because it substracts the cost of debt and taxes. EBITDA stands for:

  • Earnings
  • Before
  • Interest
  • Tax
  • Depreciation
  • Amortization