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Thrivetime Show | Business School without the BS

What is EBIDTA? What Are Healthy Profit Margins for a Business?

Thrivetime Show | Business School without the BS

Clay Clark

Business, Entrepreneur, Thrivetime, Businessschool, Smallbusiness, Entrepreneurship

4.81.5K Ratings

🗓️ 8 June 2019

⏱️ 14 minutes

🧾️ Download transcript

Summary

A Thriver asks, what are healthy profit margins for a business and what is a healthy amount of debt to carry with your small business and what is EBIDTA??

Transcript

Click on a timestamp to play from that location

0:00.0

You have questions America's number one business coach has answers.

0:05.0

It's your Broda from Minnesota.

0:07.0

Here's another edition of Ask Clay Anything on the Thrive Time Business Coach Radio Show.

0:13.0

Yes, yes, and yes, Thrive Nation.

0:19.0

Welcome back to another exciting edition

0:24.1

of the Thrive Time Show on your radio and podcast download.

0:28.8

Now on today's show, we are answering a question

0:31.4

from a Thrivever out there.

0:32.8

Andrew do you have the question in front of you

0:36.4

written there by the thriver?

0:37.4

I believe it's highlighted in green on today's show notes.

0:40.0

I see it.

0:40.6

What is the question that is asked by the member of the Thrive Nation?

0:44.8

So he says it may be a question for an accountant, but what do you recommend as a healthy

0:50.8

debt? And he says, E-B-I-D-T-A ratio in general for service businesses and for medical practices.

0:59.6

All right, well let's start to define some stuff there. So a lot of times you're going to hear the phrase,

1:03.8

EBITDA, people say, ah, man, what's the EBITDA?

1:07.0

What's the EBA?

1:08.0

But I have a hard time with a jargon sometimes,

1:11.3

not attacking our thriver who's asking the question for writing that phrase, but you, have you ever seen this phrase before?

1:19.0

Me? Yeah, yeah, I've seen it before, I've seen it.

1:21.0

But I mean, it's not something you talk about on the daily basis right so therefore we lose a

...

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