{"id":3368,"date":"2018-10-22T09:00:24","date_gmt":"2018-10-22T03:30:24","guid":{"rendered":"http:\/\/capitalante.com\/?p=3368"},"modified":"2020-03-08T11:52:54","modified_gmt":"2020-03-08T06:22:54","slug":"how-to-pick-best-stocks-by-ebitda-margin","status":"publish","type":"post","link":"https:\/\/capitalante.com\/how-to-pick-best-stocks-by-ebitda-margin\/","title":{"rendered":"How to Pick Best Stocks by EBITDA Margin"},"content":{"rendered":"
Apart from fundamental analysis or technical analysis or qualitative analysis of stocks one of the important matrices is EBITDA margin while determining the health of a company. The EBITDA stands for Earnings before Interest Taxes before Depreciation and Amortization. EBITDA or EBITDA margin<\/strong> can be used as an instrument or method to find out a company\u2019s or a stock\u2019s net profit among its gross profit. This EBITDA is a measurement as a percentage of total revenue earned by a company. It is figured out by dividing total revenue. In this platform today, we will learn what You, of course, are familiar with what income or revenue is. The vital matter is what the source of income or revenue a company adopts. For example, Titan Company sells watches, jewellery etc. By selling these products Titan Company gets its income or revenue. Again, let\u2019s take the example of TCS or Infosys. They provide technical services or develop software and by doing so they create their revenue. This is their source of income or revenue.<\/span><\/p>\n Interest is the column which reveals how much amount a company spends as charges on its debts either in short term or long term. You should check whether the company you wish to invest in pays any interest. You should confirm whether the company pays off interest in According to companies act, 1956 of Depreciation is a reduction in It is an accounting term that refers to the process of In our country, India, till This has happened because of the advent of modern technology and rapid change in A retail company generates Rs. 100\/- as\u00a0revenue or income. The company incurs Rs. 40\/-as product cost and Rs. 20\/- as operating expenses i.e. salary or transportation throughout the country. Depreciation and amortization expenses <\/a><\/p>\n The EBITDA of a company may be negative. If a company\u2019s loss is significant enough the company may post negative EBITDA. EBITDA allows an investor to focus on the company and how many returns the company has delivered. In the above If you have any question about EBITDA margin feel free to comment so that we have a discussion. if you found this post helpful please share with your loved ones.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" Apart from fundamental analysis or technical analysis or qualitative analysis of stocks one of the important matrices is EBITDA margin while determining the health of a company. The EBITDA stands for Earnings before Interest Taxes before Depreciation and Amortization. EBITDA … <\/p>\nIncome \/ Revenue<\/strong><\/span><\/h6>\n
Interest<\/strong><\/span><\/h6>\n
Tax<\/strong><\/span><\/h6>\n
Depreciation<\/strong><\/span><\/h6>\n
\n
Amortization<\/strong><\/span><\/h6>\n
Example 1<\/strong><\/span><\/h6>\n
How to Calculate EBITDA Margin<\/strong><\/span><\/h6>\n
When EBITDA Margin is Negative<\/strong><\/span><\/h6>\n
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