Pretax earnings or profits

(redirected from Pre-Tax Profit)
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Pretax earnings or profits

Net income before federal income taxes are subtracted.

Pretax Earnings or Profits

A company's total revenue less its operating expenses, interest paid, and depreciation, but not taxes. For example, a widget manufacturer earns $1,000,000 in total revenue. The widgets cost $200,000 to make and his administrative and payroll expenses total $250,000. He also must subtract $50,000 in depreciation on his widget manufacturing equipment. His net income is stated as: $1,000,000 - $200,000 - $250,000 - $50,000 = $500,000. It is important to note, however, that this number does not include any taxes that the widget manufacturer must pay that year; this fact is what differentiates pretax earnings or profits from net income.
References in periodicals archive ?
Resona Holdings, Inc (TYO:8308) said that its group pre-tax profit increased by 51.
Both pre-tax profit and revenue for the three-month period increased, respectively from DKK31.
Regarding its profit guidance, the bank said that it is expecting full-year pre-tax profit to be on par or higher than results in 2009.
Both pre-tax profit and net interest income for the nine-month period increased, respectively from EUR404m and EUR561m, as compared to the corresponding period in 2004.
Both pre-tax profit and net sales for the six-month period decreased, respectively from DKK5m and DKK116m, as compared to the corresponding period in 2004.
Both pre-tax profit and net interest income for the six-month period increased, respectively from EUR275m and EUR373m, as compared to the corresponding period in 2004.
the rate of pre-tax profits to total assets (or rate of return on assets)
The Danish sports stadium operator PARKEN Sport & Entertainment A/S reported on Friday (25 February) a pre-tax profit of DKK18.
Citibank Taiwan Limited (NYSE: C) has said that it expects its pre-tax profit in 2010 to increase from 2009 due to the improving economy and its integration of Bank of Overseas Chinese, which was completed in August, Dow Jones has reported citing president Victor Kuan.
NORDIC BUSINESS REPORT-11 February 2005-Roskilde Bank reports pre-tax profit of DKK281m in 2004(C)1994-2005 M2 COMMUNICATIONS LTD http://www.
Pre-tax profit grew from a loss of $26,000 in May 2004 to a gain of $66,000 in May 2005, a 253% improvement.
NORDIC BUSINESS REPORT-10 February 2005-Realkredit Danmark A/S reports pre-tax profit of DKK2.