EBITDA Margin is used in determining how profitable a company or business is with regard to operations. It is calculated as EBITDA (Earnings before interest, tax and depreciation) divided by Revenue. This is an average of the past 5 years.
EBITDA margin measures the extent to which cash operating expenses use up revenue. Because EBITDA excludes depreciation and amortisation, EBITDA margin arguably provides a cleaner view of a company's core profitability.