How To Define Pretax Earnings?
Profit before tax is the company's income after all operating expenses, including interest and depreciation, deducted from total sales or income, but income tax is deducted. Because pre-tax revenue does not include taxes, this metric allows companies to compare companies' internal profits in industries or geographic areas where corporate taxes vary. For example, although companies based in the United States are subject to the same tax rate at the federal level, they are subject to different tax rates at the state level.
- Pre-tax profit is the income of a company which remains after deducting all expenses of the company including interest and depreciation from total sales or income, but income tax is withheld.
- Pre-tax income provides information about a company's financial performance regardless of the impact of the tax.
- Many people see pre-tax income as a more accurate measure of business performance and health over time.
Literal Meanings of Pretax Earnings
Meanings of Pretax:
(Income or profit) is calculated or calculated before tax.
Sentences of Pretax
23% increase in pre-tax profit
Meanings of Earnings:
Money received in return for work or services.
Synonyms of Earnings
revenue, fringe benefits, pay, wages, income, pickings, net pay, proceeds, perks, gross pay, emolument, return, payment, yield, honoraria, takings, take-home pay, remuneration, dividends, gain, salary, fees, stipend, profit