GlaxoSmithKline (CAI:BIOC) Pretax Margin %: 43.56% (As of Sep. 2016)


What is GlaxoSmithKline Pretax Margin %?

GlaxoSmithKline CAI:BIOC +1.69% Pretax Margin % is 43.56% as of Sep. 2016.

Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. GlaxoSmithKline's Pre-Tax Income for the three months ended in Sep. 2016 was E£117 Mil. GlaxoSmithKline's Revenue for the three months ended in Sep. 2016 was E£268 Mil. Therefore, GlaxoSmithKline's pretax margin for the quarter that ended in Sep. 2016 was 43.56%.

The historical rank and industry rank for GlaxoSmithKline's Pretax Margin % or its related term are showing as below:


CAI:BIOC's Pretax Margin % is not ranked *
in the Drug Manufacturers industry.
Industry Median: 7.285
* Ranked among companies with meaningful Pretax Margin % only.

GlaxoSmithKline  (CAI:BIOC) 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.

GlaxoSmithKline Pretax Margin % Related Terms

GlaxoSmithKline Pretax Margin % Historical Data

* Premium members only.

The historical data trend for GlaxoSmithKline'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.

GlaxoSmithKline Pretax Margin % Chart

GlaxoSmithKline Annual Data
Trend Dec12 Dec13 Dec14 Dec15
Pretax Margin %
10.53 11.42 10.48 10.87

GlaxoSmithKline Quarterly Data
Dec12 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
Pretax Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -10.75 83.30 -26.88 13.12 43.56

CAI:BIOC vs PRPH: Pretax Margin % Comparison

For the Drug Manufacturers - General subindustry, GlaxoSmithKline'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.

GlaxoSmithKline Pretax Margin % vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, GlaxoSmithKline's Pretax Margin % distribution charts can be found below:

* The bar in red indicates where GlaxoSmithKline's Pretax Margin % falls into.


GlaxoSmithKline 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.

GlaxoSmithKline's Pretax Margin for the fiscal year that ended in Dec. 2015 is calculated as

Pretax Margin=Pre-Tax Income (A: Dec. 2015 )/Revenue (A: Dec. 2015 )
=110.931/1020.948
=10.87 %

GlaxoSmithKline's Pretax Margin for the quarter that ended in Sep. 2016 is calculated as

Pretax Margin=Pre-Tax Income (Q: Sep. 2016 )/Revenue (Q: Sep. 2016 )
=116.62/267.715
=43.56 %

* 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.

Frequently Asked Questions Learn more about Pretax Margin % →
What does a Pretax Margin % of 43.56% mean?
GlaxoSmithKline (CAI:BIOC) has a Pretax Margin % of 43.56% as of Sep. 2016. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on GlaxoSmithKline and its competitors.
Is GlaxoSmithKline's Pretax Margin % too high?
GlaxoSmithKline's current Pretax Margin % is 43.56%. The Drug Manufacturers industry median Pretax Margin % is 7.29. GlaxoSmithKline's value of 43.56% is 497.9% above this industry median.
How does GlaxoSmithKline's Pretax Margin % compare to PRPH?
GlaxoSmithKline's Pretax Margin % of 43.56% can be compared against companies in the Drug Manufacturers industry. The industry median Pretax Margin % is 7.29. GlaxoSmithKline's value of 43.56% is 497.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Drug Manufacturers company?
The median Pretax Margin % among Drug Manufacturers companies is 7.29, based on 956 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. GlaxoSmithKline's current Pretax Margin % of 43.56% is 497.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on GlaxoSmithKline and its competitors. For the Drug Manufacturers industry, the median Pretax Margin % is 7.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GlaxoSmithKline's current Pretax Margin % is 43.56%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GlaxoSmithKline stock overvalued right now?
GlaxoSmithKline (CAI:BIOC) has a current Pretax Margin % of 43.56%. The current Pretax Margin % is 43.56% and 497.9% above the Drug Manufacturers industry median of 7.29. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For GlaxoSmithKline (CAI:BIOC), the current Pretax Margin % is 43.56% as of Sep. 2016. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

GlaxoSmithKline Business Description

Address Boomerang Building, No 46, Block (J) First Section City Centre, Town Centre, Second floor, Fifth District - New Cairo, Cairo, EGY, 11835
GlaxoSmithKline is a pharmaceutical company. It is focused on developing new medicines in respiratory, HIV, oncology, and immune-inflation. The company is segmented into Commercial Operations and Total Research and development. It generates the majority of its revenue from the Commercial Operations segment.