After-tax profit margin

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 ?
But chief exec Michael O'Leary said the airline had cut fares while maintaining a "world-leading" after-tax profit margin.
A recent survey asked high-school graduates to estimate the after-tax profit margin at an average company.
Even the National Wholesale Druggists' Association report on a fall in after-tax profit margin could have a silver lining.
If something like what Congress has been considering becomes law, and works as expected, tax changes could reduce Prudential's capitalization level while increasing the company's after-tax profit margins, according to Robert Falzon.
The combined after-tax profit margins of three of the largest medical electronics manufacturers, Boston Scientific, Medtronics and St.