What is this?
Operating earnings before interest, tax, depreciation and amortization as a share of revenue.
Formula
EBITDA / Revenue × 100
Required inputs
- EBITDA
- Revenue
Free Tools Finance
EBITDA Margin Calculator
EBITDA as a percentage of revenue.
Worked example
₹4,75,000 EBITDA / ₹10,00,000 revenue = 47.5%.
How to interpret it
Use with a consistent accounting period; it is not net profit.
Common mistake
Do not present EBITDA as cash or statutory profit.
When to use it
Compare operating performance before financing and non-cash charges.