Calculate the EBIT per Revenue, which is the ratio of a company’s earnings before interest and taxes to its revenue, indicating how much profit a company generates from its operations before paying interest on debt and taxes on its earnings.

The EBIT to Revenue ratio measures the company’s ability to generate profit from its core operations relative to its revenue. It provides insights into the operational efficiency and profitability of the company, as it excludes the impact of interest expenses and taxes on its earnings. A higher ratio indicates that a larger portion of the company’s revenue is converted into operating profit.

The formula is as follows:

\[\text{EBIT to Revenue} = \text{EBIT} / \text{Revenue}\]

Also known as: EBIT margin, operating income to revenue.

No programming experience? With the Finance Toolkit MCP server, AI assistants such as Claude and ChatGPT can calculate the EBIT to Revenue for you. Just ask in plain English.

Calculate the EBIT to Revenue in Python

The EBIT to Revenue is available in the Ratios module of the open-source Finance Toolkit. Install it with:

pip install financetoolkit -U

Then call get_EBIT_to_revenue as shown below.

from financetoolkit import Toolkit

toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")

ebit_to_revenue_ratios = toolkit.ratios.get_EBIT_to_revenue()

Which returns:

  2021 2022 2023 2024 2025
AAPL 0.3058 0.3095 0.307 0.3158 0.3189
TSLA 0.1227 0.1707 0.1049 0.0954 0.0586

Parameters

get_EBIT_to_revenue accepts the following parameters:

  • rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
  • growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
  • lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
  • standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
  • trailing (int): Defines whether to select a trailing period. E.g. when selecting 4 with quarterly data, the TTM is calculated.
Income Quality Ratio Return on Tangible Assets (RoTA) Return on Capital Employed (RoCE) Net Income per EBT Free Cash Flow Operating Cash Flow Ratio Tax Burden Ratio EBT to EBIT Cash Tax Rate Tax Rate Divergence EBITDA Margin Free Cash Flow Margin Cash Return on Assets (CRoA)

The Ratios module page introduces the module, and the sidebar lists all of its functions.

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