EBIT Margin

EBIT Margin is a financial metric that shows how much profit a company makes from its core operations, relative to its total revenue. It’s calculated by dividing EBIT (Earnings Before Interest and Taxes) by total sales, then multiplying by 100 to get a percentage. A higher EBIT margin indicates the company is efficiently turning sales into profit from its main activities, before accounting for interest and taxes. It helps investors assess operational efficiency and compare profitability across companies in the same industry.