EBITDA Margin | Formula | Calculation and Examples

In this video we discuss what is EBITDA Margin? its formula, calculation, Why it is important? and the drawbacks of EBITDA Margin.

𝐖𝐡𝐚𝐭 𝐢𝐬 𝐄𝐁𝐈𝐓𝐃𝐀 𝐌𝐚𝐫𝐠𝐢𝐧?
--------------------------------------------

It is a profitability ratio that calculates how much of the EBITDA i.e (earnings before interest depreciation and amortization) is generated as a percentage of Sales.

𝐄𝐁𝐈𝐓𝐃𝐀 𝐌𝐚𝐫𝐠𝐢𝐧 𝐅𝐨𝐫𝐦𝐮𝐥𝐚
-----------------------------------------------

Here is the formula to calculate EBITDA Margin.

EBITDA (Earnings Before Interest Depreciation and Amortization) = Operating Income (EBIT) + Depreciation + Amortization

𝐖𝐡𝐲 𝐄𝐁𝐈𝐓𝐃𝐀 𝐌𝐚𝐫𝐠𝐢𝐧 𝐢𝐬 𝐈𝐦𝐩𝐨𝐫𝐭𝐚𝐧𝐭?
-------------------------------------------------------------

#𝟏 - EBITDA is basically considered as a cash operating profit margin which does not include the effect of capital structure also non-cash items like depreciation and amortization.

#𝟐 - EBITDA measures how much cash the firm is generating per unit revenue.

#𝟑 - EBITDA margin basically removes non-operating effects that are unique to each firm.

#𝟒 - EBITDA margin is useful for a year over year firm analysis.

To know more about 𝐄𝐁𝐈𝐓𝐃𝐀 𝐌𝐚𝐫𝐠𝐢𝐧, you can go to this 𝗹𝗶𝗻𝗸 𝗵𝗲𝗿𝗲:- https://www.wallstreetmojo.com/ebidta-margin/

Subscribe to our channel to get new updated videos. Click the button above to subscribe or click on the link below to subscribe - https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1

Видео EBITDA Margin | Formula | Calculation and Examples канала WallStreetMojo