9 Sep

EBIT margin


SAP Business One Finance Training

the EBIT margin (The EBIT margin is an important key figure for assessing the operating profitability of a company. It puts the operating result (EBIT - Earnings Before Interest and Taxes) in relation to sales. The formula is as follows: (EBIT / sales revenue) * 100. The result in per cent indicates how much profit was generated from the actual core business per euro of sales before interest and taxes are taken into account. The major advantage of the EBIT margin lies in its international comparability, as it measures profitability independently of the company's financing structure (interest expense) and national taxation. It is therefore an unbiased indicator of the performance of the operating business. A high or rising EBIT margin signals a high level of efficiency and earning power. The calculation of the margin is based on the figures that are determined as part of the Financial statements in SAP Business One be determined. For ongoing monitoring during the year, controlling tools such as the Versino Financial Suite management dashboards that graphically illustrate the development of the EBIT margin over time.


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