EBIT margin

Definition

A profitability measure equal to EBIT divided by net revenue. This value is useful when comparing multiple companies, especially within a given industry, and also helps evaluate how a company has grown over time.

Use EBIT margin in a sentence

You should try to use the ebit margin to see if there are any ways that you could be improving your efficiency.

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We spent the afternoon crunching the numbers on the EBIT margin and finally had some figures we felt comfortable with.

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They wanted to decide on a new company to invest in. They limited it to a final three, and then reviewed a number of ratios including the EBIT margin.

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