What is EBITDA margin?
EBITDA / Revenue * 100%
What does EBITDA margin mean?
This tells the investor or analyst how much operating cash is generated for every dollar of income. EBITDA margin can then be used as a benchmark.
It is worth noting that a company with a high EBITDA margin is more efficient and maximizes its profitability, while a company with a low EBITDA margin may not be running efficiently or operates in a competitive industry.