FULL FORM OF PAT
WHAT IS PAT
The PAT stand for profit after tax. The profit after tax is the earning of a business entity after all taxes which is liable to pay have been deducted. After deduction of tax the amount which available with the company is net profit. The profit after tax figure is considered the best measure of the ability of the business entity to generate a return,since it incorporates both operating income and income from other sources like interest income etc.
The profit after tax margin is closely observed by the investors to assess the income generating ability of a company which changes over period of time. Profit margin of a company could be considered valuation indicator that may result in change in the stock price.
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