Income Before Tax Profit Margin
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.