Formula to calculate ebit to sales ratio:
EBIT to Sales = (earnings before interest and taxes) / sales.
EBIT to sales ratio definition and explanation:
The EBIT to sales ratio determines whether the fixed costs are too high for the production volume.
The EBIT to sales ratio is included in the financial statement ratio analysis spreadsheets highlighted in the left column, which provide formulas, definitions, calculation, charts and explanations of each ratio.