- EBITDA to Sales = Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) / Turnover
- It shows the percentage of Earnings before Interest, Taxes, Depreciation and Amortization that the company achieves in relation to its
- total Turnover.
- The higher the ratio, the more profitable the company is.
- Training Ratios
Business actions to improve the Ratio
- EBITDA = Sales – Cost of Goods Sold – Operating Expenses
- Increase in EBITDA = Increase in Sales and/or
- Decrease in Cost of Goods Sold and/or
- Decrease in Operating Expenses
- Decrease in Sales with a simultaneous greater absolute reduction in Cost of Goods Sold and/or Operating Expenses
