Series 79: Pre-Tax Margin

Taken from our Series 79 Top-off Online Guide

Pre-Tax Margin

A company’s pre-tax margin, also known as pre-tax profit margin, conveys much the same information as its net margin, but any differences associated with tax regimen or timing of tax payments get stripped away. To calculate pre-tax margin, simply add income taxes to net profit, then divide the resulting number by revenue.

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