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Finance
EBITDA Margin
EBITDA divided by revenue, shown as a percentage — a quick way to compare core profitability between companies.
EBITDA margin removes the effects of different tax rates, interest, and accounting choices so you can compare companies apples-to-apples. It’s especially useful in industries with heavy depreciation (telecom, manufacturing).
It's the report card for how efficiently the actual business is running before the accountants and bankers get involved.
Real world: A software company with 45% EBITDA margin is far more efficient than a retail chain with 12%. Investors love high and growing EBITDA margins.
💡 Higher EBITDA margin usually means a stronger, more scalable business.