--- title: EBIT margin simply explained description: Calculate EBIT margin ✓ English ✓ Example ✓ Score ✓ EBIT margin ✓ Definition ✓ Screener ⇒ Read now! image: https://blog.stocksguide.com/hubfs/EBIT-Marge%20%F0%9F%87%BA%F0%9F%87%B8.jpg --- [![StocksGuideFianl](https://blog.stocksguide.com/hubfs/StocksGuideFianl.svg "StocksGuideFianl")](https://stocksguide.com/en) - [Portfolios](https://stocksguide.com/en/portfolios) - [Screener](https://stocksguide.com/en/screener) - [Charts](https://stocksguide.com/en/charts) - [Alerts](https://stocksguide.com/en/stock-metric-alerts) - Tools - Discover stocks - [Stock Screener](https://stocksguide.com/en/screener) - [Indices](https://stocksguide.com/en/indices) - [Sectors](https://stocksguide.com/en/sectors) - [Dividend-Topscorer](https://stocksguide.com/en/dividends-strategy/topscorer) - [Growth-Topscorer](https://stocksguide.com/en/high-growth-investing/topscorer) - [Levermann-Topscorer](https://stocksguide.com/en/levermann-strategy/topscorer) - Analyze stocks - [Charting](https://stocksguide.com/en/charts) - [Dividend Calender](https://stocksguide.com/en/dividends-calendar) - [Earnings Calender](https://stocksguide.com/en/earnings-calendar) - [Dividends-Strategy](https://stocksguide.com/en/dividends-strategy) - [Growth-Strategy](https://stocksguide.com/en/high-growth-investing/strategy) - [Levermann-Strategy](https://stocksguide.com/en/levermann-strategy) - Monitor stocks - [Dashboard](https://stocksguide.com/en) - [HGI Watchlist](https://stocksguide.com/en/high-growth-investing/high-growth-investing-watchlist) - [Aristocrats](https://stocksguide.com/en/dividend-aristocrats) - [Notifications](https://stocksguide.com/en/users/edit#notifications) - [Hig-Tech-Wikifolio](https://stocksguide.com/en/high-growth-investing/high-tech-stock-picking-wikifolio) - [Elite Dividend Stocks](https://stocksguide.com/en/continuity-toplists/listen) - [Blog](https://blog.stocksguide.com) - [Portfolios](https://stocksguide.com/en/portfolios) - [Screener](https://stocksguide.com/en/screener) - [Charts](https://stocksguide.com/en/charts) - [Alerts](https://stocksguide.com/en/stock-metric-alerts) - Tools - Discover stocks - [Stock Screener](https://stocksguide.com/en/screener) - [Indices](https://stocksguide.com/en/indices) - [Sectors](https://stocksguide.com/en/sectors) - [Dividend-Topscorer](https://stocksguide.com/en/dividends-strategy/topscorer) - [Growth-Topscorer](https://stocksguide.com/en/high-growth-investing/topscorer) - [Levermann-Topscorer](https://stocksguide.com/en/levermann-strategy/topscorer) - Analyze stocks - [Charting](https://stocksguide.com/en/charts) - [Dividend Calender](https://stocksguide.com/en/dividends-calendar) - [Earnings Calender](https://stocksguide.com/en/earnings-calendar) - [Dividends-Strategy](https://stocksguide.com/en/dividends-strategy) - [Growth-Strategy](https://stocksguide.com/en/high-growth-investing/strategy) - [Levermann-Strategy](https://stocksguide.com/en/levermann-strategy) - Monitor stocks - [Dashboard](https://stocksguide.com/en) - [HGI Watchlist](https://stocksguide.com/en/high-growth-investing/high-growth-investing-watchlist) - [Aristocrats](https://stocksguide.com/en/dividend-aristocrats) - [Notifications](https://stocksguide.com/en/users/edit#notifications) - [Hig-Tech-Wikifolio](https://stocksguide.com/en/high-growth-investing/high-tech-stock-picking-wikifolio) - [Elite Dividend Stocks](https://stocksguide.com/en/continuity-toplists/listen) - [Blog](https://blog.stocksguide.com) Search Search - [Contact Us](https://stocksguide.com/en/contacts/new) - [Contact Us](https://stocksguide.com/en/contacts/new) Search Search ![EBIT margin simply explained](https://blog.stocksguide.com/hubfs/EBIT-Marge%20%F0%9F%87%BA%F0%9F%87%B8.jpg) Nov 03, 2021 | [Knowledge](https://blog.stocksguide.com/topic/knowledge) # EBIT margin simply explained The EBIT margin is the ratio of EBIT to sales. This allows the profitability of a company to be assessed. We explain everything you need to know about the EBIT margin: What is... [Oscar Leistikow](https://blog.stocksguide.com/author/oscar-leistikow) Share - [mailto:?&subject=EBIT%20margin%20simply%20explained&body=EBIT%20margin%20simply%20explained%0A(https%3A%2F%2Fblog.stocksguide.com%2Fknowledge%2Febit-margin-simply-explained)](mailto:?&subject=EBIT%20margin%20simply%20explained&body=EBIT%20margin%20simply%20explained%0A(https%3A%2F%2Fblog.stocksguide.com%2Fknowledge%2Febit-margin-simply-explained)) - - - **Table of contents** 1. [What is the EBIT margin?](https://blog.stocksguide.com/knowledge/ebit-margin-simply-explained#What-is-the-EBIT-margin) 2. [How is the EBIT margin calculated?](https://blog.stocksguide.com/knowledge/ebit-margin-simply-explained#How-is-the-EBIT-margin-calculated) 3. [What does the EBIT margin mean?](https://blog.stocksguide.com/knowledge/ebit-margin-simply-explained#What-does-the-EBIT-margin-mean) 4. [Top 10 shares with the highest EBIT margin worldwide](https://blog.stocksguide.com/knowledge/ebit-margin-simply-explained#Top-10-shares-with-the-highest-EBIT-margin) #### **What is the EBIT margin?** The EBIT margin is the ratio of EBIT to sales. This allows the profitability of a company to be assessed. The ratio is internationally meaningful, as the use of EBIT excludes national tax and financing conditions from the result. EBIT represents the operating result and revenue the sum of all a company's income. The calculation can be based on different time periods (e.g. last financial year or TTM). TTM is the abbreviation for “Trailing Twelve Months” and reflects the operating result over the last 12 months or 4 quarters. #### **How is the EBIT margin calculated?** EBIT is divided by sales for the same period. **Calculate EBIT:** The calculation of the EBIT margin (TTM) of Facebook shares as at October 15, 2021 is shown as an illustration: **![Berechnung Ebit-Marge](https://blog.stocksguide.com/hs-fs/hubfs/Berechnung%20Ebit-Marge.jpg?width=624&height=139&name=Berechnung%20Ebit-Marge.jpg)** In stocksguide you will find the EBIT margin for each share as a key figure of the Levermann strategy and on the “Overview” tab under financial data in the income statement. According to the Levermann strategy, the following points are awarded for the EBIT margin key figure: ![EBIT-Marge Punkte](https://blog.stocksguide.com/hs-fs/hubfs/EBIT-Marge%20Punkte.jpg?width=624&height=139&name=EBIT-Marge%20Punkte.jpg)   The calculation of the EBIT margin is shown in the income statement (red box): ![](https://blog.stocksguide.com/hs-fs/hubfs/image-png-Sep-13-2024-09-01-33-9476-AM.png?width=700&height=334&name=image-png-Sep-13-2024-09-01-33-9476-AM.png)   #### **What does the EBIT margin mean?** The EBIT margin serves as a benchmark for the profitability of a company. For example, it provides a good assessment of whether the company will quickly become loss-making or very profitable if costs rise or sales fall. Whether the EBIT margin under consideration is good or bad also depends on other influencing factors, e.g: - long-term development of the EBIT margin - EBIT margin compared to the competition - Future prospects of a company's industry - Position of the company in this market - Speed of growth - Business model ## **Top 10 stocks with the highest EBIT margin worldwide** The following table shows the [top 10 mid and large cap stocks with a high EBIT margin](https://stocksguide.com/en/screener?metrics=market_cap_eur-greater_equal-10%26ebit_margin_ttm-greater_equal-60).  Updated on: Wed, Aug 07 2024 | **Stock ** | **EBIT margin** | | --- | --- | | [Porsche Holding Vz.](https://stocksguide.com/en/stock/Porsche-Holding-Vz-DE000PAH0038)  | 99.31% | | [Vici Properties Inc](https://stocksguide.com/en/stock/Vici-Properties-Inc-US9256521090) | 92.66% | | [Power Assets Holdings Limited](https://stocksguide.com/en/stock/Power-Assets-Holdings-Limited-HK0006000050) | 87.54% | | [Ares Capital Corporation](https://stocksguide.com/en/stock/Ares-Capital-Corporation-US04010L1035) | 86.47% | | [Interactive Brokers Group, Inc. Class A](https://stocksguide.com/en/stock/Interactive-Brokers-Group-Inc-Class-A-US45841N1072) | 84.87% | | [Kweichow Moutai](https://stocksguide.com/en/stock/Kweichow-Moutai-CNE0000018R8) | 79.47% | | [Sagax](https://stocksguide.com/en/stock/Sagax-SE0005127818) | 78.53% | | [Texas Pacific Land Trust](https://stocksguide.com/en/stock/Texas-Pacific-Land-Trust-US8826101086) | 78.43% | | [Gaming and Leisure Properties, Inc.](https://stocksguide.com/en/stock/Gaming-and-Leisure-Properties-Inc-US36467J1088) | 74.90% | | [Segro](https://stocksguide.com/en/stock/Segro-GB00B5ZN1N88) | 72.75% |   [Knowledge](https://blog.stocksguide.com/tag/Knowledge) ![Oscar Leistikow](https://blog.stocksguide.com/hs-fs/hubfs/Oscar%20Leistikow.jpg?width=70&name=Oscar%20Leistikow.jpg) ### Written By: Oscar Leistikow Oscar Leistikow holds a Master's degree in Controlling and is at home in the world of numbers thanks to his many years of professional experience in the finance department of a DAX-listed company. He is fascinated by the capital markets and is an enthusiastic private investor himself. His aim is to pass on his knowledge of shares and the stock market and to develop StocksGuide into a leading tool for private investors. ## You May Also Like ### [![EBIT margin simply explained](https://blog.stocksguide.com/hubfs/Bruttomarge%20%5BEN%5D.jpg) *Feb 17, 2022 | Knowledge* Gross Margin Explained with Calculation & Definition](https://blog.stocksguide.com/knowledge/gross-margin-explained-with-calculation-definition) ### [![EBIT margin simply explained](https://blog.stocksguide.com/hubfs/Free%20Cashflow%20Marge%20%5BEN%5D-1.jpg) *Apr 14, 2025 | Knowledge* Free Cashflow Margin simply explained](https://blog.stocksguide.com/knowledge/free-cashflow-margin-simply-explained) ### [![EBIT margin simply explained](https://blog.stocksguide.com/hubfs/EBIT%20%F0%9F%87%BA%F0%9F%87%B8.jpg) *Oct 20, 2021 | Knowledge* EBIT simply explained](https://blog.stocksguide.com/knowledge/ebit-simply-explained) [View more blog posts](https://www.example.com) [![StocksGuideFianl](https://blog.stocksguide.com/hubfs/StocksGuideFianl.svg "StocksGuideFianl")](https://stocksguide.com/en) Binzallee 30, Zürich 8055 © 2024 aktien.guide AG - StocksGuide - [Features](https://stocksguide.com/en/product) - [Plans](https://stocksguide.com/en/premium) - Company - [About](https://stocksguide.com/en/about-us) - [Contact us](https://stocksguide.com/en/contacts/new) - [Privacy Policy](https://stocksguide.com/en/privacy-policy) - [Imprint](https://stocksguide.com/en/imprint) - Discover Stocks - [Blog](https://blog.stocksguide.com) - [Earnings Calendar](https://stocksguide.com/en/earnings-calendar) - [Dividend Calendar](https://stocksguide.com/en/dividends-calendar) - [Stock Screener](https://stocksguide.com/en/screener) - [Elite Dividend Stocks](https://stocksguide.com/en/continuity-toplists/listen) - [Dividend Aristocrats](https://stocksguide.com/en/dividend-aristocrats) - [Stocks](https://stocksguide.com/en/stocks) - [Glossary](https://lp.stocksguide.com/glossary) **Disclaimer** aktien.guide AG assumes no liability for the information presented, its accuracy and completeness. 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