What Is Pretax Margin?
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➡️ What Is Pretax Margin? - ✳ Definition: Pretax margin, also know as Profit Before Tax (PBT) margin, is an indicator of a company's profitability and is obtained by dividing income before tax by sales. Income before tax is obtained by adding net income and income tax. The higher the pretax margin, the more profitable and efficient the company is. - ✳ Formula: Pretax margin = Income before tax / Sales Pretax margin = (Net income + Income tax) / Sales - ✳ Example: Let's take an example with Coca-Cola ($KO). For the year 2019, the company reported the following figures: Sales: $ 7.27 B Net income: $ 8.99 B Income tax: $ 1.80 B Thus, the income before tax is as follows: $ 8.99 + $ 1.80 = $ 10.79 B As a result, the Pretax margin is: $ 10.79 / $ 37.27 = 29 % - *Remember this isn't investment advice, just general information only. Any investing involves risks.* - ❤️ Like | 👇 Save | 📣 Share | 💬 Comment 🏆 Many thanks for your support 🏆 - 👉Follow @11Graphs for more👈 👉Follow @11Graphs for more👈