Ratios & Quality

Pre-Tax Profit Margin

Expresses the effective or accounting tax burden as a percentage of another economic base. This allows intensity, efficiency or coverage to be compared without company size dominating the reading.

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Pre-Tax Profit Margin

pretaxProfitMargin · Ratios & Quality

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Definition: Expresses the effective or accounting tax burden as a percentage of another economic base. This allows intensity, efficiency or coverage to be compared without company size dominating the reading.
Calculation: Income before tax / revenue.
Uses: Useful for comparing similar models and tracking efficiency, pricing power, financial risk or taxation. It can mislead across sectors or with one-offs, restructuring or accounting-policy changes. Complement with growth, FCF, ROIC, asset turnover and notes.