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:

Also known as: pretax margin, EBT margin.

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Calculate the Income Before Tax Profit Margin in Python

The Income Before Tax Profit Margin is available in the Ratios module of the open-source Finance Toolkit. Install it 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:

Parameters

get_income_before_tax_profit_margin 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.

Related Profitability Ratios

The Ratios module page introduces the module, and the sidebar lists all of its functions.