Net Profit Margin
Overview
{% Net \, Profit \, Margin = \frac{Net \, Profit}{Sales} %}
EBIT Margins
{% EBIT \, Margin = \frac{EBIT}{Sales} %}
where {% EBIT %} is earnings before interest and taxes. That is, {% EBIT %} takes the firms income and adds back taxes and interest on debt.
{% EBITDA \, Margin = \frac{EBITDA}{Sales} %}
where {% EBITDA %} is earnings before interest, taxes, depreciation and amortization. That is, {% EBITDA %} takes the firms income
and adds back taxes, interest on debt, depreciation and amortization.
