EBITDA Margin: What It Is, Formula, and How to Use It
The EBITDA margin is a measure of a company's operating profit as a percentage of its revenue. It allows for a comparison of one company's real performance to the performance of others in the same industry. EBITDA is an earnings measure that focuses on the essentials of a business: its operating profitability and cash flows. The EBITDA margin is calculated by dividing EBITDA by revenue, and it is used as a performance metric by investors and analysts. 1462
