oboloo Glossary

Ebit Margin

oboloo Glossary

Ebit Margin

Ebit Margin, also known as Earnings Before Interest and Taxes (EBIT) Margin, is a financial metric that measures the profitability of a business by comparing operating income to total revenue. It is calculated by dividing Ebit by total revenue and multiplying it by 100 to get a percentage. This figure is an important tool for measuring a company’s overall performance and helps investors decide whether or not to invest in the business. By getting a better understanding of the company’s costs and profits, investors can make informed decisions about the company’s potential for long-term growth.