Pretax Earnings

Pretax Earnings,

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

Pretax:

Meanings of Pretax:
  1. (Income or profit) is calculated or calculated before tax.

Sentences of Pretax
  1. 23% increase in pre-tax profit

Earnings:

Meanings of Earnings:
  1. 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

Pretax Earnings,

What is Pretax Earnings?

  • Will Canton specializes in investment and business legislation and regulation. Prior to that, he held senior writing positions at Investopedia and Kapitall Wire, and received a master's degree in economics from New York University's New School for Social Research and a Ph.D. in philosophy in English literature.

    • Profit before tax is the income of a company which remains after all expenses of the company including interest and depreciation, deducted from total sales or income, but income tax is withheld.
    • Pre-tax revenue provides information about a company's financial performance, regardless of the tax effect.
    • Many people see pre-tax income as a more accurate measure of business performance and health over time.