Horizon.my

This ratio is useful as a rule-of-thumb. For example if the corporate tax rate is 26%, then Tax Expense divided by Profit Before Tax should be around that range. Differences usually arise because of either: 1. Timing issues (eg. expenses being tax deductible in a different accounting period) 2. Permanent differences (eg. expenses not being [...]

EBIT Margin = EBIT / Revenue It is a measure of the company’s earnings margin before the impact of tax and financing.