What is 'AfterTax Profit Margin'
Aftertax profit margin is a financial performance ratio, calculated by dividing net income after taxes by net sales. A company's aftertax profit margin is important because it tells investors the percentage of money a company actually earns per dollar of sales. This ratio is interpreted in the same way as profit margin  the aftertax profit margin is simply more stringent because it takes taxes into account.
BREAKING DOWN 'AfterTax Profit Margin'
Often, a company's earnings don't tell the entire story. The amount of profit can increase, but that doesn't mean the company's profit margin is improving. For example, a company's sales could increase, but if costs also rise, that leads to a lower profit margin than what the company had when it had lower profits. This is an indication that the company needs to better control its costs.

Profit Margin
Profit margin is part of a category of profitability ratios calculated ... 
AfterTax Return On Sales
A profitability measure that indicates how well a company uses ... 
AfterTax Return On Assets
A profitability measure that indicates how well a company uses ... 
Net Profit Margin
Net Margin is the ratio of net profits to revenues for a company ... 
Marginal Profit
Marginal profit is the profit earned by a firm or individual ... 
AfterTax Return
The return on an investment including all income received and ...

Investing
A Look At Corporate Profit Margins
Take a deeper look at a company's profitability with the help of profit margin ratios. 
Investing
The Difference Between Gross and Net Profit Margin
To calculate gross profit margin, subtract the cost of goods sold from a company’s revenue; then divide by revenue. 
Investing
What’s a Good Profit Margin for a New Business?
Surprisingly, the younger your company is, the better its numbers may look. 
Investing
What is Net Margin?
The ratio of net profits to revenues for a company that shows how much of each dollar earned by the company is translated into profits. 
Investing
What's a Good Profit Margin for a Mature Business?
How to determine if the amount you clear dovetails with the competition. 
Investing
Contribution Margin
Contribution margin is a cost accounting concept that allows a company to determine the profitability of individual products. 
Investing
Gross, Operating and Net Profit Margins
A company’s income statement includes the company’s gross, operating and net profits. 
Markets
Analyze Investments Quickly With Ratios
There are four categories of financial ratios: profitability, liquidity, solvency and valuation. 
Trading
Buying on Margin
When an investor buys on margin, he or she pays a portion of the stock price – called the margin  and borrows the rest from a stockbroker. The purchased stocks then serve as collateral for ... 
Investing
4 Tips to Evaluate Growth Companies (KO, AAPL)
Discover the best metrics for stock investors to utilize when selecting and evaluating the best opportunities in growth investing.

Should I look at a company's operating profit or net profit?
Explore the ways in which investors and market analysts use a company's operating profit and net profit margins for equity ... Read Answer >> 
What is the difference between gross profit margin and net profit margin?
Understand the difference between the two profitability measures, gross profit margin and net profit margin, and how to calculate ... Read Answer >> 
What is the difference between gross margin and profit margin?
Understand the difference between gross margin and profit margin, and learn about the profitability ratios used in evaluating ... Read Answer >> 
What's the difference between profit margin and operating margin?
Find out the differences between a company's gross profit margin, net profit margin and operating margin, and what each metric ... Read Answer >> 
What are some examples of factors that will affect my profit margin?
Dive into profit margin, and discover some of the many factors that can influence the profit margin for your company in a ... Read Answer >> 
What is the difference between operating margin and profit margin?
Understand the difference between operating margin and profit margin in relation to evaluating a company's profitability ... Read Answer >>