- EBT to Sales = Earnings Before Taxes (EBT) / Turnover
- It shows the percentage of Earnings Before Taxes that the company achieves in relation to its
- total Turnover.
- The higher the ratio, the more profitable the company is.
- Training Metrics
Business actions to improve the Index
- EBT = Sales – Cost of Goods Sold – Operating Expenses – Depreciation – Cash flow
- Increase in EBT = Increase in Sales and/or
- Reduce in Cost of Goods Sold and/or
- Reduce in Operating Expenses and/or
- Reduce in Depreciation of Fixed Assets and/or
- Reduce in Cash flow
- Reduce in Sales with a simultaneous greater absolute reduction in Cost of Goods Sold and/or Operating Expenses and/or
- Depreciation
