EBITDA Ratios in the Wilderness Lodge Industry
EBITDA means Earnings Before Interest, Taxes, Depreciation, and Amortization. It defines how much the Wilderness Lodge is making in profit after expenses and is one of the most used financial health indicators in the hospitality industry.
An EBITDA ratio is a profitability ratio that measures how much in earnings a company is generating as a percentage of revenue. EBITDA Margin = EBITDA / Revenue.
Below, are some examples of Wilderness Lodge EBITDA ratios that can be used to improve your revenue management approach – bringing better profitability and financial growth to your Wilderness Lodge.
Sample Wilderness Lodge EBITDA Ratios
The above table illustrates how Wilderness Lodges exhibit a wide range of profitability. The figure shows how the sample EBITDA ratios range from 10.96% to 59.03% of total operating revenues. The average is 27.88%. In general, limited-service and select-service Wilderness Lodges can be operated more efficiently than full-service Wilderness Lodges.
Interpreting the EBITDA Ratio
As a rule of thumb, the following table represents the interpretation of EBITDA ratio:
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