Page 49 - BCML AR 2019-20
P. 49
(%) (x) (x)
23.88 0.19
0.18
16.83
15.69
16.08 0.13
14.38
10.63
10.26 0.08 8.68
FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20
EBIDTA margin Gearing Interest cover
Definition Definition Definition
EBITDA margin is a profitability ratio This is derived through the ratio of long- This is derived through the division of
used to measure the efffectiveness term debt to net worth EBIDTA by interest outflow.
of Company’s business strategy and Why is this measured? Why is this measured?
operating efficiency
This is one of the defining measures of a Interest cover indicates the Company’s
Why is this measured? Company’s solvency. comfort in servicing interest – the higher
The EBIDTA margin provides an idea of Performance the better.
how much a Company earns (before The Company’s long-term gearing at the Performance
accounting for interest and taxes).
end of the year was 0.19. Ideally this ratio The Company’s interest cover remained
Performance should be read in conjunction with the among the strongest in the industry.
The Company’s EBIDTA margin was lower Company’s declining net debt, indicating
by 170 bps owing to lower power tariff. a growing ability to pay back loans.
Annual Report 2019-20 | 47
