top of page
Vector.png

Financial Encyclopedia

EBITDA margin

Definition

EBITDA margin is a profitability ratio that demonstrates how much in earnings a company is generating before interest, taxes, depreciation, and amortization, as a percentage of revenue.

Example

EBITDA margin calculated for PJSC Tatneft:

EBITDA margin (2017) = 200, 8 / 581,5 * 100% = 34,5%
EBITDA margin (2018) = 314, 8 / 793,2 * 100% = 39,7%
EBITDA margin (2019) = 328,4 / 827,0 * 100% = 39,7%

The calculations show that there is an uptrend, which indicates the efficiency of the business.

More detailed

EBITDA margin = EBITDA / Revenue * 100%

The higher the EBITDA margin, the lower the company's operating costs relative to total revenue, and the higher the company's efficiency.

 

Low EBITDA margins may indicate business problems with generating profits and the possible presence of high operating costs. To increase profitability, company has to reduce operating costs and interest expenses while maintaining the same revenue or increase revenue.

 

Investors compare the EBITDA margins of companies in the same industry with each other. The higher the score, the better.

 

According to Ranks methodology, this indicator is analyzed in the Financial position and Growth blocks and used along with other indicators to calculate the score.

排名

LLC «等级 AAA»

Aghasi Khanjyan street, 50, Yerevan, Armenia, 0025

销售部门:

电子邮件: sales@ranksworld.com
伊琳娜: 

Armenia:
Marr street, 16, apt. 5, Yerevan, Armenia, 0079
Prefix LLC

联系方式:

社交:

Mask group.png

塞浦路斯:
Loutrakiou, 5, CHARA VENEZIA BUILDING, 1st floor,
Office 101, 尼科西亚, 塞浦路斯, 2027
Zolotukhin & Partners 有限公司

LLC“AAA级”不提供经纪服务,也不将资金用于信托管理。
法人实体代码:53125283 保险公司代码:43715106 注册于 亚美尼亚司法部. 
风险警告和免责声明

© «RANKS» 2022. 保留所有权利

Privacy Policy

Terms of Use

bottom of page