EBIT to Revenue
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.
EBIT to Revenue in Python
get_EBIT_to_revenue is part of 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.