EBITDA Margin
Short definition
EBITDA margin is EBITDA divided by revenue. It shows scale, the price–cost gap and cash opex load as a rate; it does not measure cash conversion.
Detailed explanation
The margin makes operating leverage comparable independent of absolute EBITDA. Low-margin high volume and high-margin low volume can print the same EBITDA with different credit and valuation risk.
Inflation, FX and inventory move both numerator and denominator. Forward EBITDA margin layers growth and cost assumptions onto the reported rate; inflating the multiple’s denominator inflates value.
Why it matters for the CFO
Pricing and opex discipline show up here. Covenants often test absolute EBITDA, but a fading margin quietly cuts debt capacity at the same sales level.
How it is calculated
FAVÖK marjı = FAVÖK / Satış gelirleri
Period EBITDA over the same period’s net revenue.
Variables in the formula
- EBITDA margin: EBITDA / Revenue
How to read it
Is the gain price, input cost, or deferred opex? Lease mix breaks the series under IFRS 16. Peer comparison without adjusting for asset intensity and outsourcing is empty; there is no universal “good” margin.
Numerical example
EBITDA 120 mn TL, net sales 400 mn TL → EBITDA margin = 120 / 400 = 30%.
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What to learn next
Definitions are educational. They are not investment, credit or tax advice.