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Financial Terms related to Margin
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glossary with more than five thousand financial
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Findthousandsoffinancialtermsatwww.
ftpall.
com
Financial Terms related to Margin
This document is part of the valuable contents
available at www.
ftpall.
com, a free online
glossary with more than five thousand financial
and business terms.
This document can be copied and distributed freely
respecting its original format.
It is forbidden its
transcription, translation or change on its format
without authorization of its author or editor.
MARGIN
After tax profit margin
• The ratio of net income to net sales.
Average pre tax profit margin
• Pre-tax Income divided by Sales.
This measures how well management converts
sales dollars into profits after deducting all the operating expenses for making and
selling its products.
Compare the last two years pre-tax profit margins with the 5year average to show the trend of growth.
Average profit margin
• See Average Pre-tax Profit Margin.
Before tax profit margin
• The ratio of net income before taxes to net sales.
Buy on margin
Less