Top Company by EBITDA Income (Highest EBITDA Companies List) - FirmsWorld (2024)

FAQs

What companies have the best EBITDA? ›

Some regularly-high EBITDA margin, capital-intensive industries include oil and gas, railroad, mining, telecom, and semiconductors. Utilities and telecom services also benefit from high barriers to entry, limiting the number of competitors in a given geography and often leading to a monopoly.

The most prominent factors that influence the EBITDA margin are inflation or deflation in the economy, changes in laws and regulation, competitive pressures from rivals, movements in market prices of goods and services, and changes in consumer preferences.

EBITDA margin = EBITDA / Total Revenue

The margin can then be compared with another similar business in the same industry. An EBITDA margin of 10% or more is considered good.

It takes into consideration growth and profit. In terms of interpreting the rule, 40% is the baseline figure where the company is deemed healthy and in good shape. If the percentage exceeds 40%, then the company is likely in a very favorable position for long-term growth and profitability.

Warren Buffett shares some of his thoughts on EBITDA:

“We won't buy into companies where someone's talking about EBITDA. If you look at all companies, and split them into companies that use EBITDA as a metric and those that don't, I suspect you'll find a lot more fraud in the former group.

An EBITDA margin of 10% or more is typically considered good, as S&P 500-listed companies generally have higher EBITDA margins between 11% and 14%.

What is a good EBITDA by industry? ›

Mukesh Ambani-led Reliance Industries has topped the list with a revenue of ₹7.36 lakh crore and an annual growth of 47 percent.

A “good” EBITDA margin varies by industry, but a 60% margin in most industries would be a good sign. If those margins were, say, 10%, it would indicate that the startups had profitability as well as cash flow problems.

EBITDA can be defined as earnings before interest, taxes, depreciation and amortization. Apple EBITDA for the quarter ending September 30, 2022 was $27.759B, a 3.68% increase year-over-year. Apple EBITDA for the twelve months ending September 30, 2022 was $130.541B, a 8.57% increase year-over-year.

What is a good EBITDA? An EBITDA over 10 is considered good. Over the last several years, the EBITDA has ranged between 11 and 14 for the S&P 500. You may also look at other businesses in your industry and their reported EBITDA as a way to see how your company is measuring up.

The very basic and rough rule of thumb valuation for a company with around a million or more in earnings is a value of 5 times EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization).

Since these expenses cannot be negative amounts, it's impossible to have an EM greater than 100%. If you calculate an EM greater than 100%, you've probably miscalculated. You can view EM as a liquidity metric, as it shows remaining cash income after paying operating costs.

Stated simply, the Rule of 50 is governed by the principle that if the percentage of annual revenue growth plus earnings before interest, taxes, depreciation and amortization (EBITDA) as a percentage of revenue are equal to 50 or greater, the company is performing at an elite level; if it falls below this metric, some ...

What are the top 10 most profitable industries? ›

The pharma sector was not affected by the pandemic. In fact, it was one of the few sectors with high demand during the pandemic. The pharmaceutical sector will never face a loss since medicines are a basic requirement. Thus, it is one of the most profitable business sectors in India.

Now, 90% of the media in the United States is controlled by just six corporations: AT&T, CBS, Comcast, Disney, Newscorp and Viacom.

With a market cap of ₹1,763,263.62 crores Reliance Industries leads the Indian Industries with the highest market cap. The multinational conglomerate company is headquartered in Mumbai and engages in a range of businesses in the textiles, telecommunications, retail, natural resources, and petrochemical sectors.

How to Make the Top 1% List. To be in the top 1%, you must have an annual wage of at least $823,763, according to the Economic Policy Institute, That excludes sources of unearned income like investment returns.

EBITDA can be defined as earnings before interest, taxes, depreciation and amortization. Goldman Sachs EBITDA for the quarter ending September 30, 2022 was $4.422B, a 39.84% decline year-over-year. Goldman Sachs EBITDA for the twelve months ending September 30, 2022 was $19.197B, a 35.11% decline year-over-year.

What is Warren Buffett's 90 10 rule? ›

What Is the 90/10 Strategy? Legendary investor Warren Buffett invented the “90/10" investing strategy for the investment of retirement savings. The method involves deploying 90% of one's investment capital into stock-based index funds while allocating the remaining 10% of money toward lower-risk investments.

The higher the EBITDA margin, the smaller a company's operating expenses in relation to total revenue, increasing its bottom line and leading to a more profitable operation.

The Rule of 40 is a principle that states a software company's combined revenue growth rate and profit margin should equal or exceed 40%. SaaS companies above 40% are generating profit at a rate that's sustainable, whereas companies below 40% may face cash flow or liquidity issues.

If the current owner is not paid a salary, then an appropriate market rate salary is deducted when calculating EBITDA. The same is true if the current owner or manager is underpaid. A market-rate salary for a manager or CEO is deducted to arrive at EBITDA.

A positive EBITDA means that the company is profitable at an operating level: it sells its products higher than they cost to make. At the opposite, a negative EBITDA means that the company is facing some operational difficulties or that it is poorly managed.

Calculating a company's EBITDA margin is helpful when gauging the effectiveness of a company's cost-cutting efforts. The higher a company's EBITDA margin is, the lower its operating expenses are in relation to total revenue.

A “good” EBITDA margin varies by industry, but a 60% margin in most industries would be a good sign. If those margins were, say, 10%, it would indicate that the startups had profitability as well as cash flow problems.

Investors can compare the multiples of various companies and estimate how much they really need to pay to acquire this company. As a practice, it is seen that the lower the value of the EBITDA multiplies by industry, the cheaper is the acquisition cost of the company. Usually, any value below 10 is considered good.

For example, if the gross margin on your primary product is only two percent, you may need to find a way to raise prices or reduce the expense of sourcing or production, but if you're seeing margins around 60 percent, you're in a good position to drive substantial earnings.

Is 60% a good margin? ›

What is a good gross profit margin ratio? On the face of it, a gross profit margin ratio of 50 to 70% would be considered healthy, and it would be for many types of businesses, like retailers, restaurants, manufacturers and other producers of goods.

A high EV/EBITDA multiple implies that the company is potentially overvalued, with the reverse being true for a low EV/EBITDA multiple. Generally, the lower the EV-to-EBITDA ratio, the more attractive the company may be as a potential investment.

The higher the EBITDA margin, the smaller a company's operating expenses in relation to total revenue, increasing its bottom line and leading to a more profitable operation.

EBITDA can be defined as earnings before interest, taxes, depreciation and amortization. CocaCola EBITDA for the quarter ending September 30, 2022 was $3.395B, a 4.14% increase year-over-year. CocaCola EBITDA for the twelve months ending September 30, 2022 was $11.800B, a 5.71% decline year-over-year.

EBITDA can be defined as earnings before interest, taxes, depreciation and amortization. Starbucks EBITDA for the quarter ending September 30, 2022 was $1.556B, a 16.35% decline year-over-year. Starbucks EBITDA for the twelve months ending September 30, 2022 was $6.147B, a 3.89% decline year-over-year.