Pretax Profit Margin

Pretax Profit Margin,

What is The Meaning of Pretax Profit Margin?

Definition of Pretax Profit Margin: Profit margin before tax is a financial accounting tool used to measure a company's operating efficiency. It is a metric that tells us what percentage of sales have been converted into profit, or in other words, how many cents a company has in profits for every dollar of sales before tax. Profit margin before tax is often used to compare the profits of companies in the same industry.

  • Pre-tax profit margin is a financial calculation tool used to measure a company's operating performance before tax deductions.
  • Indicators tell us how many cents a company makes for every dollar sold and is a useful tool for comparing companies in the same industry.
  • Pre-tax profit margins are better than modest profit margins because the tax burden can change the ratio of profits between companies.
  • They are less efficient at comparing companies in other industries because each industry often has a different model of operating and selling costs.

Literal Meanings of Pretax Profit Margin


Meanings of Pretax:
  1. (Income or profit) is considered or calculated before tax.

Sentences of Pretax
  1. Profit before tax increased by 23%


Meanings of Profit:
  1. The difference between the financial benefit, especially the money received and the money spent on buying, running or doing something.

  2. Gaining economic benefits or benefits, especially from an investment.

Sentences of Profit
  1. Benefits before taxes

  2. The only people who liked the whole thing were lawyers.

Synonyms of Profit

payback, yield, excess, surplus, make a profit, return, dividend, financial gain, make a killing, make money, gain, returns, interest


Meanings of Margin:
  1. Set boundaries or boundaries.

  2. Deposit a certain amount to a broker as a suicide (for account or transaction)

  3. The edge or edge of something.

  4. The amount for which something or less is obtained.

Sentences of Margin
  1. The leaves are described in yellow

  2. New contracts include revenues from existing contracts

  3. East coast of the Indian Ocean

  4. Conquer with a lead of 17 points

Synonyms of Margin

side, amount, boundary, difference, bound, border, extremity, perimeter, majority, edge, brim, fringe, gap, bank, degree of difference, limits, verge, measure of difference, brink, rim