EBITDA Margin
Operating cash profitability as a percent of revenue, before interest, taxes, depreciation, and amortization.
What it is
EBITDA margin measures profitability as earnings before interest, taxes, depreciation, and amortization (EBITDA) divided by revenue. By adding back depreciation and amortization to operating profit, it approximates the cash-based profitability of the core business and ignores how assets were financed or how their costs are spread over time. It is widely used to compare companies with heavy fixed assets.
Why it matters
EBITDA margin is popular for comparing capital-intensive firms because it removes non-cash charges and financing differences, making operations easier to compare. The major pitfall is that EBITDA is not a standardized accounting figure and ignores real costs like capital spending needed to maintain the business, so it can flatter companies with high reinvestment needs or heavy debt. It should be read alongside operating margin and free cash flow, not on its own.
How it's calculated
Take operating income (EBIT) and add back depreciation and amortization to get EBITDA, then divide by revenue and express as a percentage.
How Quintarthai uses it
EBITDA-based metrics appear in the enterprise-value and profitability ratios on a company's deep-analysis page, where they are paired with EV/EBITDA multiples and the full income statement.