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 ?
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 tax changes could also lead to a big increase in the company's after-tax profit margins, Falzon said.
Tax Bill May Cut Prudential's RBC Ratio But Boost Its Profits
The combined after-tax profit margins of three of the largest medical electronics manufacturers, Boston Scientific, Medtronics and St.
Healthy growth for medical
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.
The yes men
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.
IT doesn't have to be spend and hope
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