Pretax Margin Calculator

The Pretax Margin measures how well a company can generate before-tax profits at the current level of sales.

If Pretax Margin increases over time:

An increasing Pretax Margin is usually a positive sign, showing the company is able to keep its operations costs low while generating earnings.

If Pretax Margin decreases over time:

A decreasing Pretax Margin is usually a negative sign, showing the company has not been able to keep its operations costs low while generating earnings.

If Pretax Margin stays the same over time:

An unchanged Pretax Margin indicates the company''s ability to keep its operations costs low while generating earnings has remained the same.