How to Calculate Ebitda Margin?

How to calculate Ebitda (Earnings Before Interest, Taxes, Depreciation and Amortization) Margin?

Ebitda Margin Calculation

Ebitda Margin is the measurement of operating cash profitability of a company in a year. It is equal to earnings before interest, tax, depreciation and amortization (EBITDA) divided by total revenue.
How To Calculate Ebitda Margin
To find the Ebitda Margin, you should find the Ebitda value.
EBITDA Margin = EBITDA / Total Revenue
EBITDA = EBIT + Depreciation + Amortization
Ebitda Margin Formula
Step 1: Consider that a company, has the total revenue of Rs. 1,000,00, EBIT of Rs. 50,000, Depreciation of Rs. 20,000 and Amortization of Rs. 10,000. Find the Ebitda Margin of the company.
Total Revenue = Rs.1,000,00
EBIT = Rs.50,000
Depreciation = Rs.20,000

Amortization = Rs.10,000
How To Calculate Ebitda Margin Step1
Step 2:
For finding the EBITDA Margin, we should first calculate the EBITDA value.
Substitute the values in EBITDA formula.
EBITDA = EBIT + Depreciation + Amortization
= 50,000 + 20,000 + 10,000
EBITDA = Rs. 80,000
How To Calculate Ebitda Margin Step2
Step 3: Now substitute the obtained value in the formula.
EBITDA Margin = EBITDA / Total Revenue
= 80,000 / 1,000,00
= 0.8
Percentage of Ebita Margin
= 0.8 x 100
EBITDA Margin = 80%
How To Calculate Ebitda Margin Step3

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