EBITDA-to-Sales Ratio

EBITDA-to-Sales Ratio

Investors and analysts use a company’s EBITDA-to-Sales ratio to gauge the core net sales margin after all core opex (operating expenses) has been deducted. Operating expenses include cost of goods sold, as well as the general & administration expenses, that are shown on the income statement. A higher EBITDA-to-Sales margin by definition infers higher profitability.

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