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EBITA Margin Calculator

Written by:
PK

Below is an EBITA margin calculator to compute earnings before interest expenses, taxes, and amortization margin. Enter a company's net earnings, interest expenses, amortization, and tax payments in the period, and total revenues to compute the EBITA margin.

EBITA Margin Calculator

What is the EBITA Margin?

The EBITA margin is a measure of a company's Earnings Before Interest, Taxes, and Amortization (or EBITA) as a percentage of its revenues. EBITA is a modified measure of earnings that adjusts for taxes and the company's choice of capitalization by normalizing interest, and adds back amortization – the write-off of intangible assets.

EBIT, EBITA, and EBITDA (and their further variants) all arguably show a company's situation better – or, in the case of a turnaround, before – than using net profit margins. EBITA for most companies is close to operating earnings with amortization added back. Further adding back depreciation would leave you with EBITDA.

EBITA Margin Formula

The formula for EBITA margin is:

EBITA\ Margin=\frac{net\ income+interest\ expense+tax\ expense+amortization}{revenue}

Where:

  • Net Income: Net income from the income statement
  • Revenue: The company's top line sales
  • Tax Expense: The amount paid in taxes
  • Amortization: The amount the company listed as amortization in the period at hand
  • Interest Expense: Amount the company paid to service its debt in the period

Margin Calculators

With EBITA margin calculated, try some of the other margin calculators:

      

PK

PK started DQYDJ in 2009 to research and discuss finance and investing and help answer financial questions. He's expanded DQYDJ to build visualizations, calculators, and interactive tools.

PK is in his mid-30s and works and lives in the Bay Area with his wife, two kids, and dog.

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