Pre-tax profit Margin is a financial metric that measures a company's profitability before taxes are accounted for. It shows the percentage of revenue that remains after all operating expenses, interest, and other costs have been deducted but before taxes. This margin provides insight into a company's ability to manage its costs efficiently and generate profits from operations, excluding the impact of tax strategies or liabilities. A higher pre-tax profit margin indicates strong operational performance, while a lower margin may suggest inefficiencies or higher costs.