4. EBITDA Margin
Given below is the most typical and simple structure of a P/L statement:
4. EBITDA Margin:
This is a ratio which calculates the EBITDA as a percentage of Net Sales. Absolute numbers make it impossible to compare two firms, however, when converted into percent, comparison can be done easily. Higher the EBITDA Margin, better the firm.
In the above example, EBITDA Margin is 80% [(EBITDA)*100/ (Net Sales)].
