Investments glossary

EBITDA-To-Sales Ratio Definition

The EBITDA-to-sales ratio is a financial metric used to assess a company’s profitability by comparing its revenue with earnings. More specifically, since EBITDA is derived from revenue, this metric indicates the percentage of a company’s earnings remaining after operating expenses. Operating expenses include the cost of goods sold (COGS) and selling, general, and administrative (SG&A) expenses.

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