Calculate the Pretax Profit Margin, which is the ratio of a company’s pre-tax profit to its revenue, indicating how much profit a company makes before paying taxes on its earnings.

The Pretax Profit Margin is calculated by dividing the pre-tax profit by the revenue. It provides insight into how efficiently a company is able to generate profits from its revenue.

The formula is as follows:

\[\text{Pretax Profit Margin} = \text{Income Before Tax} / \text{Revenue}\]

Also known as: pretax margin, EBT margin.

Income Before Tax Profit Margin in Python

Install the Finance Toolkit with:

pip install financetoolkit -U

Then call get_income_before_tax_profit_margin as shown below.

from financetoolkit import Toolkit

toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")

pretax_profit_margin = toolkit.ratios.get_income_before_tax_profit_margin()

Which returns:

  2021 2022 2023 2024 2025
AAPL 0.2985 0.302 0.2967 0.3158 0.3189
TSLA 0.1178 0.1684 0.1031 0.092 0.0557

Parameters

The function accepts the following parameters:

  • rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
  • growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
  • lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
  • standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
  • trailing (int): Defines whether to select a trailing period. E.g. when selecting 4 with quarterly data, the TTM is calculated.
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