Course · 20 min read

Financial Ratio Analysis (Varsity, Fundamental Analysis)

Karthik Rangappa, Zerodha Varsity · zerodha.com Free Beginner India

Zerodha Varsity's chapter on profitability ratios, worked on a real Indian company's results. It defines EBITDA as operating revenue minus operating expense and walks through EBITDA margin and PAT margin.

  • EBITDA = operating revenues minus operating expenses (total expense less finance cost, depreciation and amortisation).
  • EBITDA margin = EBITDA divided by operating revenue.
  • Compare margins with a company's competitors, not across industries.
Open on zerodha.com ↗

It answers 2 questions

  1. What is EBITDA, and how do I calculate it?
  2. How do I calculate gross margin?

Read with it

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