After-tax profit margin

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After-tax profit margin

The ratio of net income to net sales.

After-Tax Profit Margin

A measure of how well a company controls its costs after taxes. It is calculated by dividing the company's net income (profit after taxes) by its net sales. A high after-tax profit margin often means the company controls its costs well and provides a value for the shareholder's investment. However, a low after-tax profit margin is not necessarily a negative sign. Some companies and industries are expensive to run and have low margins by their nature, relying on sheer volume to generate profits. However, a high after-tax profit margin is generally seen as better if it is at all feasible.
References in periodicals archive ?
7 million with approximately 10% net after-tax profit margins.
The combined after-tax profit margins of three of the largest medical electronics manufacturers, Boston Scientific, Medtronics and St.
His objectives in this, as in any business, are simply stated: Grow market share, and keep after-tax profit margins at 20 percent or better.
Best found that after-tax profit margins for A&H rose to a multiple-decade high of 5.
Best found that after-tax profit margins for annuity companies plunged for two years in 2001 and 2002 during the stock market sell-off, and then recovered somewhat.
2 percent of revenue - a hefty chunk of most companies' after-tax profit margins - according to a new benchmark study piloted by Financial Executives Institute and The Hackett Group.
Higher revenues and improved product mix contributed to increased after-tax profit margins which were 6.
Net after-tax profit margins are now back over 20 percent and are 200 to 300 basis points higher than our previous results at similar sales levels.