Pretax earnings or profits

(redirected from Pre-Tax Profits)

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 ?
Barclays Bank (LON: BARC) first quarter pre-tax profits dropped by 25 percent following reserves created to pay for a planned overhaul of its operations.
Five of the top six banking companies in Japan reported sharp year-on-year growth in pre-tax profits for the April-September period in 2010.
ENGINEERING group GKN yesterday more than doubled pre-tax profits after its aerospace division overcame delays to the Airbus super-jumbo programme.
PRE-TAX profits at C&D Foods, the pet food company owned by the family of former Taoiseach Albert Reynolds, pictured, fell 35 per cent in 2002, to EUR1.
Specialist lender Cattles yesterday said it was on course for a successful year after interim pre-tax profits surged almost 30pc to pounds 49.
the rate of pre-tax profits to total assets (or rate of return on assets)
Companies reporting included: Abbot Group full year pre-tax profits were pounds 5m (pounds 10m), EPS 25.
Pre-tax profits also declined over the analysis period, from GBP 753,000 in the first year of analysis to GBP 662,000 in the final year.
Alliance UniChem final pre-tax profits were pounds 166.
Pre-tax profits at ProSieben improved 41 percent, to EUR 115.
Marshalls full year pre-tax profits were pounds 49m (pounds 42m), EPS 20.
Wireless Carriers' Use of Actix Software to Optimize Data Services Results in 35 Percent Increase in Actix's Pre-Tax Profits