TPA Miami Slides 2022

Profitability Metrics

EBITDA, defined as earnings before interest, taxes, depreciation, and amortization, is a metric used to evaluate a company’s operating performance. It can be seen as a proxy for cash flow. It adds those four items back to a firm’s net income

Pre-tax, Pre-bonus Profit Margin on NSR

Survey Median Very High Profit Firm Median 15.6% 17.2% 22.4% Fast Growth Firm Median EBITDA Margin on NSR Survey Median Very High Profit Firm Median 16.3% 18.4% 23.5% Fast Growth Firm Median

2017 2018 2019 2020 2021

14.6% 12.7% 13.9% 15.0% 15.6%

2017 2018 2019 2020 2021

16.0% 14.2% 16.3% 16.7% 16.3%

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THE PRINCIPALS ACADEMY 2022

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