# Maximum Profit Break Even Analysis Contribution Margin Per Unit Formula Attachments Safety What Ratio Calculate Point Units Cvp Volume Dollars Variable Ing Income Statement

Finance Formulas / July 19, 2018 / Briana Leonard

## Book Value Formula

### Dividend Payout Ratio Formula

#### Accounting Rate Of Return Formula

##### Gross Domestic Product Formula
###### Retail Markup Formula

EBITDA margin is an assessment of a firm's operating profitability as a percentage of its total revenue. It is equal to earnings before interest, tax, depreciation and amortization (EBITDA) divided by total revenue. Because EBITDA excludes interest, depreciation, amortization and taxes, EBITDA margin can provide an investor, business owner or financial professional with a clear view of a company's operating profitability and cash flow.

For example, if a company had \$150,000 in revenues and \$50,000 in explicit costs, its accounting profit would be \$100,000. The same company also had \$25,000 in implicit, or opportunity costs. Its economic profit would be \$75,000.

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