Scribd Logo
Upload

Welcome to Scribd!

  • Pretax Profit Margin Discussion

    Uploaded by

    KDump
    6 views1 page
    The pretax profit margin ratio indicates a company's operating efficiency before taxes and is useful for determining year-over-year growth in the same industry. An analysis of major Philippine petroleum companies found that Petron's pretax profit declined by 2.4595% in 2018 and 1.1492% in 2019, while Shell declined by 4.8845% in 2018 but rebounded slightly in 2019. Phoenix Petroleum displayed consistent pretax profit margins for three years before declining 1.9978% in 2019. The decreases in 2018 and 2019 could be due to factors such as declining sales and higher indirect expenses, resulting in weakened market shares as companies refused to adjust prices for higher excise taxes.

    Original Description:

    Discussion Profit Margin

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The pretax profit margin ratio indicates a company's operating efficiency before taxes and is useful for determining year-over-year growth in the same industry. An analysis of major Philippine petroleum companies found that Petron's pretax profit declined by 2.4595% in 2018 and 1.1492% in 2019, while Shell declined by 4.8845% in 2018 but rebounded slightly in 2019. Phoenix Petroleum displayed consistent pretax profit margins for three years before declining 1.9978% in 2019. The decreases in 2018 and 2019 could be due to factors such as declining sales and higher indirect expenses, resulting in weakened market shares as companies refused to adjust prices for higher excise taxes.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    6 views1 page

    Pretax Profit Margin Discussion

    Uploaded by

    KDump
    The pretax profit margin ratio indicates a company's operating efficiency before taxes and is useful for determining year-over-year growth in the same industry. An analysis of major Philippine petroleum companies found that Petron's pretax profit declined by 2.4595% in 2018 and 1.1492% in 2019, while Shell declined by 4.8845% in 2018 but rebounded slightly in 2019. Phoenix Petroleum displayed consistent pretax profit margins for three years before declining 1.9978% in 2019. The decreases in 2018 and 2019 could be due to factors such as declining sales and higher indirect expenses, resulting in weakened market shares as companies refused to adjust prices for higher excise taxes.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Discussion:

    Pretax Profit Margin

    The pretax profit margin ratio indicates the operating efficiency of a company
    before taking taxes (Liberto, 2020). It is also called as Earnings Before Taxes (EBT) and
    it is useful in determining the year-over-year raw growth of a company in the same
    industry. As per the petroleum companies in the Philippines, the Petron’s pretax profit
    appears to decline by 2.4595% and 1.1492% on the years 2018 and 2019 respectively,
    on the same year that the TRAIN law has been imposed. Moreover, the Shell
    corporation also incurred a decline on the year 2018 by 4.8845% and bounce back a
    little by 0.8499% on 2019. Lastly, the Phoenix Petroleum displayed a three-year
    consistent pretax profit margin and a sudden decrease by 1.9978% on 2019. The
    sudden decrease in the earnings before taxes during the years of 2018 and 2019 could
    lead to several factors such as decline in sales and increase on indirect expenses which
    resulted to weakening market shares because they refuse to adjust their prices and not
    higher excise tax (Beltran, 2019).

    You might also like