Definition EBITDA shown as a percentage of revenue, used to compare operating profitability.
Example EBITDA of €1m on revenue of €5m gives an EBITDA margin of 20%.
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Why it matters It allows fair profitability comparisons between businesses of different sizes.
Where it is used Investor reports and company comparisons.
How to calculate it EBITDA ÷ revenue × 100
Worked example EBITDA of €1m on revenue of €5m gives an EBITDA margin of 20%.
