Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Aetna's Pre-Tax Income for the
three
months ended in Sep. 2018 was $1,367 Mil. Aetna's Revenue for the
three
months ended in Sep. 2018 was $15,484 Mil. Therefore, Aetna's pretax margin for the quarter that ended in Sep. 2018 was 8.83%.
The historical rank and industry rank for Aetna's Pretax Margin % or its related term are showing as below:
AET's Pretax Margin % is not ranked *
in the Healthcare Plans industry.
Industry Median: 2.55 * Ranked among companies with meaningful Pretax Margin % only.
Aetna Pretax Margin % Historical Data
The historical data trend for Aetna's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Healthcare Plans subindustry, Aetna's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Aetna's Pretax Margin % Distribution in the Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, Aetna's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Aetna's Pretax Margin % falls into.
Aetna Pretax Margin % Calculation
Pretax margin - also known as pretax profit margin is the ratio of Pretax Income divided by net sales or Revenue, usually presented in percent.
Aetna's Pretax Margin for the fiscal year that ended in Dec. 2017 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Aetna (NYSE:AET) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Aetna Pretax Margin % Related Terms
Thank you for viewing the detailed overview of Aetna's Pretax Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Aetna is one of the largest managed-care organizations in the U.S., with over 22 million medical members. This large member count helps the firm diversify its operating risk and has formed the basis for material competitive advantages. The firm provides health insurance services to its members through products that encompass every major insurance market--individual, group, and government sponsored. Aetna and CVS recently announced their intention to merge operations, and if approved, it would form one of the most powerful players within the healthcare space.
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