Pre-tax income margin is a measure of how much of a company’s revenue is left as profit before paying income taxes. It shows how profitable a company is before considering its tax obligations. It is calculated as a percentage of the company’s pre-tax income and revenue. The formula for pre-tax income margin is:
Pre-tax income margin = (Pre-tax income / Revenue) * 100
Where:
- Pre-tax income is IS017,
is_pretax_income
- Revenue is IS001,
is_sales_revenue_turnover