Sunday, November 19, 2006

How Do I Compare The Profitability Of One Practice To Another?


You can compare their Operating Profit Margins, that is, EBITDA, or earnings before interest, tax, depreciation and amortization expenses are considered. This creates a level playing field to examine raw profitability without all the accounting choices to be made between two different practices with respect to interest and depreciation/amortization expenses.

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