This photo is part of a blog about revenue, gross, operating and net profits and profit margins by Rolf Neuweiler, consulting CFO. www.a2zCFO.com

Revenue and Profit Margins

In our last blog, we talked about EBITDA and EBITDA margin, and stated that it is better to use both GAAP metrics and EBITDA to determine an organization’s financial health. Under the guidelines of GAAP (generally accepted accounting principles) requirements for corporate accounting, a profit margin is calculated using one of the three principles: gross…

dollars and calculator with plus red button, for calculating EBITDA = earnings before interest, taxes, depreciation, and amortization. EBITDA margin = EBITDA divided by total revenue. call me (925) 216-5058 or email: rolf@a2zCFO.com

EBITDA

What is EBITDA? EBITDA is the abbreviation for “Earnings Before Interest, Taxes, Depreciation and Amortization.”  It is a measure of overall profitability of a business.   How are EBITDA and EBITA margin calculated? EBITA = earnings before interest, taxes, depreciation, and amortization. EBITDA margin = EBITDA divided by total revenue.  EBITDA and EBITDA margin help…