Ans1 Margin Formula


Equation for calculate ans1 margin is,

EBIT = R - E
EBIT Margin = EBIT / R
Taxable Income = EBIT - I
Tax Amount = Taxable Income × T
Net Income = Taxable Income - Tax Amount
Profit Margin = Net Income / R

Where,
R = Sales Revenue
E = Operating Expenses
I = Interest Paid
T = Tax Rate