EBIT Margin

EBIT margin is operating profit margin when EBIT is clean of other income. It shows the share of sales that remains after the cost of using the asset base.

The gap between EBITDA margin and EBIT margin is depreciation and amortization as a percentage of sales. A wide gap means the business consumes a lot of capital accounting charge.

Improving EBIT margin is stronger evidence of operating progress than improving EBITDA margin, because the asset cost has not been ignored.

An impairment is an EBIT event. One large write-down can print a negative EBIT margin that says nothing about this year's pricing. Look through it, and then ask why the asset was overstated.