What are the key components of the EBITDA Margin Calculator?
- Posted: 4th February, 2025
- Updated: 4th February, 2025
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The key inputs required for an EBITDA margin calculator are:
- Net Sales/Revenue: This is the total revenue generated by the company from its operations.
- Operating Expenses: This includes the direct costs like raw materials, labor, manufacturing overheads as well as operating expenses like selling, general & administrative expenses.
- EBITDA: This is calculated by deducting total operating expenses from net sales/revenue.
- EBITDA Margin %: This is derived by dividing EBITDA by net sales/revenue and expressing it as a percentage.
The EBITDA Margin Calculator automatically computes the EBITDA and EBITDA margin percentage based on the sales/revenue and expense data provided. It eliminates the need for manual calculation using the formula:
EBITDA Margin = (EBITDA / Aggregate Revenue)
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