FORMULA CARD
Growth and margin formulas
Use only the formula named in your current task
Core formulas
| Measure | Formula | What it tells you | Common error |
|---|---|---|---|
| Revenue growth | Current revenue / Prior revenue - 1 | Rate of top-line change | Mixing quarterly and annual periods |
| EBITDA margin | EBITDA / Revenue | Operating earnings before D&A as a share of revenue | Using adjusted EBITDA without labelling it |
| EBIT margin | EBIT / Revenue | Operating profit after D&A as a share of revenue | Mixing EBIT with operating profit definitions |
| Margin change | Current margin - Prior margin | Expansion or contraction in percentage points | Calling percentage points “percent growth” |
Interpretation rule
A calculation is not a conclusion. Explain what operational driver could have caused the change and cite the evidence.