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If a business says their 'Annual Run Rate Sales' = 16 million and their 'EBITDA Margin' is @ 25%

.....does this simply mean the company's 'Annual Profit' = 16 million x 25/100 ?

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jasonthat said:   If a business says their 'Annual Run Rate Sales' = 16 million and their 'EBITDA Margin' is @ 25%

.....does this simply mean the company's 'Annual Profit' = 16 million x 25/100 ?

  EBITDA does not equal "Annual Profit".  EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation and Amortization.  It is a very "gross" margin from operations.
See this description: EBITDA

jasonthat said:   If a business says their 'Annual Run Rate Sales' = 16 million and their 'EBITDA Margin' is @ 25%

.....does this simply mean the company's 'Annual Profit' = 16 million x 25/100 ?

  What did the professor/teaching assistant say when you asked this question?

fwuser12 said:   
jasonthat said:   If a business says their 'Annual Run Rate Sales' = 16 million and their 'EBITDA Margin' is @ 25%

.....does this simply mean the company's 'Annual Profit' = 16 million x 25/100 ?
 

  What did the professor/teaching assistant say when you asked this question?

  Exactly. Fatwallet does not equal homework helper. Wouldn't it have been easier to just Google it?

http://www.investopedia.com/terms/r/runrate.asp



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