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The pretax profit margin is a financial accounting tool used to measure the operating efficiency of a company. It is a ratio that tells us the percentage of sales that has turned into profits or, in other words, how many cents of profit the business has generated for each dollar of sale before deducting taxes. The pretax profit margin is widely used to compare the profitability of businesses within the same industry. [1]
[1] Retrieved May 21, 2021, from https://www.investopedia.com/terms/p/pretax-margin.asp
[2] Retrieved May 21, 2021, from https://www.investopedia.com/terms/p/profitmargin.asp
[3] Corporate Finance Institute. Retrieved May 21, 2021, from https://corporatefinanceinstitute.com/resources/knowledge/accounting/operating-income/