EBIT Margin Calculator
This calculator helps you determine the EBIT margin, a key profitability ratio that shows the percentage of earnings before interest and taxes (EBIT) relative to revenue. It's an important metric for evaluating operational efficiency, helping investors and managers assess the profitability of a company’s core business activities.
Calculate EBIT Margin as a Percentage of Revenue
EBIT Margin Formula
Where:
- EBIT – Earnings Before Interest and Taxes
- Revenue – total income from sales or services
The EBIT Margin measures the proportion of revenue that remains after accounting for operating expenses, excluding interest and taxes. It provides insight into a company’s ability to generate profit from its core operations. A higher EBIT margin indicates a more efficient company in generating profits from its operations. This metric is crucial for comparing businesses in the same industry or assessing trends in profitability over time.