what is the ebitda to sales ratio 
the ebitda to sales ratio also known as ebitda margin is a financial metric used to assess a company s profitability by comparing its gross revenue with its earnings more specifically since ebitda itself is derived in part from revenue this metric indicates the percentage of a company s earnings remaining after operating expenses a higher value indicates the company is able to produce earnings more efficiently by keeping costs low the formula for the ebitda to sales ratio e b i t d a margin e b i t d a net sales ebitda text margin frac ebitda text net sales ebitdamargin net salesebitda 