Depreciation and amortisation: \u20a68,000<\/li>\n<\/ul>\n\n\n\n\u20a6400,000 + \u20a6190,000 + \u20a625,000 + \u20a68,000 = \u20a6623,000<\/p>\n\n\n\n
To work out the EBITDA margin, you can divide the EBITDA by total revenue. <\/p>\n\n\n\n
For example:<\/p>\n\n\n\n
Company ABC<\/strong><\/p>\n\n\n\n(\u20a6670,000 \/ \u20a61,000,000) x 100 = 67%<\/p>\n\n\n\n
Company XYZ<\/strong><\/p>\n\n\n\n(\u20a6623,000 \/ \u20a61,000,000) x 100 = 62.3%<\/p>\n\n\n\n
Bear in mind that if one company has a lower revenue but a higher EBITDA margin compared to another, investors will view this company as having a more sustainable business model, making it a better investment. <\/p>\n","protected":false},"excerpt":{"rendered":"
There are several different metrics businesses can use to calculate their financial health and performance, and EBITDA is one of them. EBITDA is often used by businesses to compare their financial performance against that of their competitors, while analysts might use it to help determine the sustainability of an organisation. Additionally, if you are looking […]<\/p>\n","protected":false},"author":22,"featured_media":32415,"comment_status":"closed","ping_status":"closed","template":"","category":[367,362,59],"acf":[],"featured_image_urls":{"full":["https:\/\/swoopfunding.com\/ng\/wp-content\/uploads\/sites\/9\/2023\/02\/pexels-pixabay-209224-scaled.jpg",2560,1707,false],"thumbnail":["https:\/\/swoopfunding.com\/ng\/wp-content\/uploads\/sites\/9\/2023\/02\/pexels-pixabay-209224-150x150.jpg",150,150,true],"medium":["https:\/\/swoopfunding.com\/ng\/wp-content\/uploads\/sites\/9\/2023\/02\/pexels-pixabay-209224-300x200.jpg",300,200,true],"medium_large":["https:\/\/swoopfunding.com\/ng\/wp-content\/uploads\/sites\/9\/2023\/02\/pexels-pixabay-209224-768x512.jpg",768,512,true],"large":["https:\/\/swoopfunding.com\/ng\/wp-content\/uploads\/sites\/9\/2023\/02\/pexels-pixabay-209224-1024x683.jpg",1024,683,true],"1536x1536":["https:\/\/swoopfunding.com\/ng\/wp-content\/uploads\/sites\/9\/2023\/02\/pexels-pixabay-209224-1536x1024.jpg",1536,1024,true],"2048x2048":["https:\/\/swoopfunding.com\/ng\/wp-content\/uploads\/sites\/9\/2023\/02\/pexels-pixabay-209224-2048x1365.jpg",2048,1365,true],"image_blog":["https:\/\/swoopfunding.com\/ng\/wp-content\/uploads\/sites\/9\/2023\/02\/pexels-pixabay-209224-408x252.jpg",408,252,true],"image_podcast":["https:\/\/swoopfunding.com\/ng\/wp-content\/uploads\/sites\/9\/2023\/02\/pexels-pixabay-209224-397x298.jpg",397,298,true],"image_banking":["https:\/\/swoopfunding.com\/ng\/wp-content\/uploads\/sites\/9\/2023\/02\/pexels-pixabay-209224-30x20.jpg",30,20,true],"image_blog_internal":["https:\/\/swoopfunding.com\/ng\/wp-content\/uploads\/sites\/9\/2023\/02\/pexels-pixabay-209224-840x480.jpg",840,480,true],"image_blog_medium":["https:\/\/swoopfunding.com\/ng\/wp-content\/uploads\/sites\/9\/2023\/02\/pexels-pixabay-209224-1024x500.jpg",1024,500,true],"image_single_banking":["https:\/\/swoopfunding.com\/ng\/wp-content\/uploads\/sites\/9\/2023\/02\/pexels-pixabay-209224-80x53.jpg",80,53,true]},"post_excerpt_stackable":"
There are several different metrics businesses can use to calculate their financial health and performance, and EBITDA is one of them. EBITDA is often used by businesses to compare their financial performance against that of their competitors, while analysts might use it to help determine the sustainability of an organisation. Additionally, if you are looking for a business loan, many banks will use EBITDA to assess whether a company can repay its debts. This guide takes a closer look at how to calculate EBITDA and its pros and cons. What is EBITDA? EBITDA stands for earnings before interest, taxes, depreciation…<\/p>\n","category_list":"SME support<\/a>, Swoop guides<\/a>, Blog<\/a>","author_info":{"name":"Rachel Wait","url":"https:\/\/swoopfunding.com\/ng\/author\/rachel-wait\/"},"comments_num":"0 comments","featured_image_urls_v2":{"full":["https:\/\/swoopfunding.com\/ng\/wp-content\/uploads\/sites\/9\/2023\/02\/pexels-pixabay-209224-scaled.jpg",2560,1707,false],"thumbnail":["https:\/\/swoopfunding.com\/ng\/wp-content\/uploads\/sites\/9\/2023\/02\/pexels-pixabay-209224-150x150.jpg",150,150,true],"medium":["https:\/\/swoopfunding.com\/ng\/wp-content\/uploads\/sites\/9\/2023\/02\/pexels-pixabay-209224-300x200.jpg",300,200,true],"medium_large":["https:\/\/swoopfunding.com\/ng\/wp-content\/uploads\/sites\/9\/2023\/02\/pexels-pixabay-209224-768x512.jpg",768,512,true],"large":["https:\/\/swoopfunding.com\/ng\/wp-content\/uploads\/sites\/9\/2023\/02\/pexels-pixabay-209224-1024x683.jpg",1024,683,true],"1536x1536":["https:\/\/swoopfunding.com\/ng\/wp-content\/uploads\/sites\/9\/2023\/02\/pexels-pixabay-209224-1536x1024.jpg",1536,1024,true],"2048x2048":["https:\/\/swoopfunding.com\/ng\/wp-content\/uploads\/sites\/9\/2023\/02\/pexels-pixabay-209224-2048x1365.jpg",2048,1365,true],"image_blog":["https:\/\/swoopfunding.com\/ng\/wp-content\/uploads\/sites\/9\/2023\/02\/pexels-pixabay-209224-408x252.jpg",408,252,true],"image_podcast":["https:\/\/swoopfunding.com\/ng\/wp-content\/uploads\/sites\/9\/2023\/02\/pexels-pixabay-209224-397x298.jpg",397,298,true],"image_banking":["https:\/\/swoopfunding.com\/ng\/wp-content\/uploads\/sites\/9\/2023\/02\/pexels-pixabay-209224-30x20.jpg",30,20,true],"image_blog_internal":["https:\/\/swoopfunding.com\/ng\/wp-content\/uploads\/sites\/9\/2023\/02\/pexels-pixabay-209224-840x480.jpg",840,480,true],"image_blog_medium":["https:\/\/swoopfunding.com\/ng\/wp-content\/uploads\/sites\/9\/2023\/02\/pexels-pixabay-209224-1024x500.jpg",1024,500,true],"image_single_banking":["https:\/\/swoopfunding.com\/ng\/wp-content\/uploads\/sites\/9\/2023\/02\/pexels-pixabay-209224-80x53.jpg",80,53,true]},"post_excerpt_stackable_v2":"There are several different metrics businesses can use to calculate their financial health and performance, and EBITDA is one of them. EBITDA is often used by businesses to compare their financial performance against that of their competitors, while analysts might use it to help determine the sustainability of an organisation. Additionally, if you are looking for a business loan, many banks will use EBITDA to assess whether a company can repay its debts. This guide takes a closer look at how to calculate EBITDA and its pros and cons. What is EBITDA? EBITDA stands for earnings before interest, taxes, depreciation…<\/p>\n","category_list_v2":"SME support<\/a>, Swoop guides<\/a>, Blog<\/a>","author_info_v2":{"name":"Rachel Wait","url":"https:\/\/swoopfunding.com\/ng\/author\/rachel-wait\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/swoopfunding.com\/ng\/wp-json\/wp\/v2\/blog\/36370"}],"collection":[{"href":"https:\/\/swoopfunding.com\/ng\/wp-json\/wp\/v2\/blog"}],"about":[{"href":"https:\/\/swoopfunding.com\/ng\/wp-json\/wp\/v2\/types\/blog"}],"author":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/ng\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/ng\/wp-json\/wp\/v2\/comments?post=36370"}],"version-history":[{"count":1,"href":"https:\/\/swoopfunding.com\/ng\/wp-json\/wp\/v2\/blog\/36370\/revisions"}],"predecessor-version":[{"id":39942,"href":"https:\/\/swoopfunding.com\/ng\/wp-json\/wp\/v2\/blog\/36370\/revisions\/39942"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/ng\/wp-json\/wp\/v2\/media\/32415"}],"wp:attachment":[{"href":"https:\/\/swoopfunding.com\/ng\/wp-json\/wp\/v2\/media?parent=36370"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swoopfunding.com\/ng\/wp-json\/wp\/v2\/category?post=36370"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}