calculate_ebitda_margin
Calculate the EBITDA margin: EBITDA divided by revenue — operating profitability before interest, tax, depreciation and amortisation, expressed as a share of sales. Formula: EBITDA Margin = EBITDA / Revenue. WHEN TO USE: Use to compare core operating profitability across companies with different capital structures, tax regimes and depreciation policies. WHEN NOT TO USE: Do NOT use when EBITDA is negative (the margin is negative and less meaningful); EBITDA also ignores capital intensity, so pair with return or free-cash-flow metrics. BEHAVIOUR: pure deterministic calculation — no side effects, no network or storage access; idempotent and non-destructive; identical inputs always produce identical outputs. Division by zero or non-finite inputs returns an explicit error instead of a number. RETURNS: JSON object { ebitda_margin: decimal (e.g. 0.25 = 25%), ebitda_margin_pct: number (e.g. 25.0), inputs }. PARAMETERS: ebitda (required): Earnings before interest, tax, depreciation and amortisation, e.g. 800000. revenue (required): Revenue (net sales) over the same period, e.g. 3200000. Must be > 0.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| ebitda | Yes | Earnings before interest, tax, depreciation and amortisation, e.g. 800000. | |
| revenue | Yes | Revenue (net sales) over the same period, e.g. 3200000. Must be > 0. |