Profitability Analysis
I'll teach you everything you need to know in this thread π
I'll teach you everything you need to know in this thread π
1οΈβ£ Gross margin (GM)
π― What?
Company's gross profit compared to its revenue
π‘ Formula?
Sales - COGS / Sales
π― What?
Company's gross profit compared to its revenue
π‘ Formula?
Sales - COGS / Sales
2οΈβ£ EBITDA Margin
π―What?
Measures a company's earnings before interest, taxes, depreciation and amortization as a percentage of its revenue
π‘ Formula?
EBITDA / Sales
π―What?
Measures a company's earnings before interest, taxes, depreciation and amortization as a percentage of its revenue
π‘ Formula?
EBITDA / Sales
3οΈβ£ EBIT Margin
π―What?
What percentage of sales remains as profit before tax and interest
π‘ Formula?
EBIT / Sales
π―What?
What percentage of sales remains as profit before tax and interest
π‘ Formula?
EBIT / Sales
4οΈβ£ Earnings Per Share
π―What?
How much a company makes for each share outstanding
π‘Formula?
Net Income / Shares Outstanding
π―What?
How much a company makes for each share outstanding
π‘Formula?
Net Income / Shares Outstanding
5οΈβ£ Free Cash Flow Margin
π―What?
Shows you what percentage of sales is translated in pure cash for the company
π‘ Formula?
Free Cash Flow / Sales
π―What?
Shows you what percentage of sales is translated in pure cash for the company
π‘ Formula?
Free Cash Flow / Sales
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