Read the formula and its variables
EBT and EBIT must be nonzero for this displayed chain, with the other stated positive bases.
| Input | Meaning |
|---|---|
| NI/EBT | Tax factor |
| EBT/EBIT | Interest factor |
| EBIT/S | EBIT margin |
| S/A and A/E | Matched turnover and multiplier |
Inspect a stated example
Factors 0.7, 0.75, 0.12, 3,000/2,100 and 3 give 27%.
The illustrative inputs are not an actual issuer’s data. Match balance coverage, flow period and units before applying the formula.
Keep the conclusion within the evidence
The first three factors produce 6.3% net margin, not 9%. Preserve precision before display rounding.
A ratio change can motivate a further question. It does not automatically identify the transaction, risk or operational outcome that produced it.