Pretax earnings or profits

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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 ?
Despite the drop in pre-tax profits, the company expects to open a further 55 sites in the financial year.
Thus, the aspiring sole proprietor's new business will have to generate $4,976 of pre-tax profit per month in order to provide a monthly draw of $3,000 which will maintain his/her desired standard of living.
2b - Industry average pre-tax profit return on total assets
Volkswagen Group Ireland, a subsidiary of Volkswagen AG (Xetra: VW), has reported its pre-tax profit for 2011.
The pre-tax profit for the full-year 2007 was DKK 3,109m, meeting our
The company's pre-tax profit before exceptional items fell to pounds 35.
The JMC second quarter 1992 pre-tax profit margin at JMC, after these adjustments, was 22.
Global Banking News-February 27, 2013--Middle East unit of ICBC reports pre-tax profit growth of 69 percent(C)2013 ENPublishing - http://www.
Europe's largest drugs distributor Gehe said yesterday pre-tax profit rose 22 per cent in the first six months of 2002 to pounds 100.
In addition, Qual-Med said it would supplement its offer price with additional funds if Health Net exceeded its projected 1991 pre-tax profit of $36.
Hong Leong Financial Group Bhd (HLFG) reported a pre-tax profit drop of 8.
All but one of the top 15 companies in the 2002 league table raised profits in the latest year and there were a record five members making a pre-tax profit over pounds 100m.