Indication of EBIT and EBITDA in IFRS reporting
Posted: Wed Jan 22, 2025 10:04 am
Companies typically present non-GAAP multiples in supplementary materials; however, EBIT and EBITDA often appear in the financial statements. They may appear in detail in the income statement or in the notes, either of which is acceptable.
IFRS does not require disclosure of non-GAAP multiples, but given their importance, providing them is desirable and most companies follow this logic.
How to achieve multiple growth in traffic and sales from your website?
Alexey Boyarkin
Dmitry Svistunov
Head of SEO and Development
Read more posts on my personal blog:
I have always been concerned about advantages of truemoney database the issue of moving to a fundamentally new level. So that the indicators would grow not by 2 or 3 times, but by several orders of magnitude. From a thousand visits to ten thousand or from ten thousand to a hundred thousand, if we are talking about a website, for example.
And I know that such leaps are always the result of painstaking work in five areas:
Technical condition of the site.
SEO.
Collection of site semantics.
Creating useful content.
Working on conversion.
And at the same time, every manager needs an increase in sales and the number of applications from the site at the moment.
To get this growth, download our step-by-step template for increasing sales from the site:
Download template
Already downloaded
153347
Ratios using EBITDA, EBIT and OIBDA
Absolute profit is not the only indicator used in reporting. Often, a more accurate representation is provided by using relative data, which involves comparing financial results with other values. Let's consider which indicators are usually compared with EBITDA, EBIT and OIBDA, as well as those that are derived from such a comparison.
EBITDA Margin, EBIT Margin, OIBDA Margin
To estimate the return on sales (EBIT Margin), you need to take the amount of profit and divide it by the amount of revenue. The resulting value is most often estimated as a percentage.
The calculation procedure for other similar values is the same: the numerator indicates profit, the denominator indicates revenue. In this regard, it will be sufficient to illustrate it only in relation to EBIT:
EBIT Margin = EBIT / Revenue (2110 OFR) * 100
These profitability indicators provide a clear idea of the economic feasibility and expected dynamics. They make clear the share of profit that each ruble of revenue from operating activities brings. It is clear that the higher this share, the more interesting the company is for the investor. It is also desirable that this indicator demonstrates stable growth from period to the next.
There are no standards for EBIT Margin, but there are approximate guidelines:
The Margin size for this enterprise for previously expired periods.
Margin values shown by competitors.
As an example, we will assess EBITDA Margin, EBIT Margin, OIBDA Margin based on NLMK PJSC data. To illustrate the indicators in dynamics, we will supplement them with values for 2020.
Let's calculate the profitability:
IFRS does not require disclosure of non-GAAP multiples, but given their importance, providing them is desirable and most companies follow this logic.
How to achieve multiple growth in traffic and sales from your website?
Alexey Boyarkin
Dmitry Svistunov
Head of SEO and Development
Read more posts on my personal blog:
I have always been concerned about advantages of truemoney database the issue of moving to a fundamentally new level. So that the indicators would grow not by 2 or 3 times, but by several orders of magnitude. From a thousand visits to ten thousand or from ten thousand to a hundred thousand, if we are talking about a website, for example.
And I know that such leaps are always the result of painstaking work in five areas:
Technical condition of the site.
SEO.
Collection of site semantics.
Creating useful content.
Working on conversion.
And at the same time, every manager needs an increase in sales and the number of applications from the site at the moment.
To get this growth, download our step-by-step template for increasing sales from the site:
Download template
Already downloaded
153347
Ratios using EBITDA, EBIT and OIBDA
Absolute profit is not the only indicator used in reporting. Often, a more accurate representation is provided by using relative data, which involves comparing financial results with other values. Let's consider which indicators are usually compared with EBITDA, EBIT and OIBDA, as well as those that are derived from such a comparison.
EBITDA Margin, EBIT Margin, OIBDA Margin
To estimate the return on sales (EBIT Margin), you need to take the amount of profit and divide it by the amount of revenue. The resulting value is most often estimated as a percentage.
The calculation procedure for other similar values is the same: the numerator indicates profit, the denominator indicates revenue. In this regard, it will be sufficient to illustrate it only in relation to EBIT:
EBIT Margin = EBIT / Revenue (2110 OFR) * 100
These profitability indicators provide a clear idea of the economic feasibility and expected dynamics. They make clear the share of profit that each ruble of revenue from operating activities brings. It is clear that the higher this share, the more interesting the company is for the investor. It is also desirable that this indicator demonstrates stable growth from period to the next.
There are no standards for EBIT Margin, but there are approximate guidelines:
The Margin size for this enterprise for previously expired periods.
Margin values shown by competitors.
As an example, we will assess EBITDA Margin, EBIT Margin, OIBDA Margin based on NLMK PJSC data. To illustrate the indicators in dynamics, we will supplement them with values for 2020.
Let's calculate the profitability: