Finance Formulas / July 13, 2018 / Luz Tyson
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.
EBITDA margin differs from the operating margin, which excludes depreciation and amortization from the profitability measure. Other variations of a firm's profit margin include gross profit margin, net profit margin and after-tax profit margin. For more on the differences between EBITDA margin and other profitability margins.
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