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Shopify (NYSE:SHOP) Pretax Margin %

: -11.50% (As of Sep. 2022)
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Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Shopify's Pre-Tax Income for the three months ended in Sep. 2022 was $-157 Mil. Shopify's Revenue for the three months ended in Sep. 2022 was $1,366 Mil. Therefore, Shopify's pretax margin for the quarter that ended in Sep. 2022 was -11.50%.

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

SHOP' s Pretax Margin % Range Over the Past 10 Years
Min: -66.67   Med: -6.04   Max: 68.1
Current: -66.67


SHOP's Pretax Margin % is ranked worse than
83.65% of 2672 companies
in the Software industry
Industry Median: 2.29 vs SHOP: -66.67

Shopify (NYSE:SHOP) Pretax Margin % Historical Data

The historical data trend for Shopify'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.

* Premium members only.

Shopify Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Pretax Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -5.94 -6.01 -6.07 8.20 68.10

Shopify Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Pretax Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 119.28 -35.41 -137.32 -92.52 -11.50

Shopify 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.

Shopify's Pretax Margin for the fiscal year that ended in Dec. 2021 is calculated as

Pretax Margin=Pre-Tax Income (A: Dec. 2021 )/Revenue (A: Dec. 2021 )
=3140.592/4611.856
=68.10 %

Shopify's Pretax Margin for the quarter that ended in Sep. 2022 is calculated as

Pretax Margin=Pre-Tax Income (Q: Sep. 2022 )/Revenue (Q: Sep. 2022 )
=-157.133/1366.2
=-11.50 %

* 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.


Shopify  (NYSE:SHOP) 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.


Shopify Pretax Margin % Related Terms

Thank you for viewing the detailed overview of Shopify's Pretax Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Shopify (NYSE:SHOP) Business Description

Shopify logo
Traded in Other Exchanges
Address
151 O'Connor Street, Ground Floor, Ottawa, ON, CAN, K2P2L8
Shopify offers an e-commerce platform primarily to small and midsize businesses. The firm has two segments: subscription solutions (43% of fiscal 2018 revenue) and merchant solutions (57% of fiscal 2018 revenue). The subscription solutions segment allows Shopify merchants to conduct e-commerce on a variety of platforms, including the company's website, physical stores, pop-up stores, kiosks, social networks (Facebook), and Amazon. Merchant solutions are add-on products for the platform that facilitate e-commerce and include Shopify Payments, Shopify Shipping, and Shopify Capital.

Shopify (NYSE:SHOP) Headlines

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