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 ?
Fourth quarter pretax earnings were driven by a 306 percent increase in Feed, and a 421 percent increase in Layers compared to Q4 2012.
An institutional investor predicted the company's pretax earnings to reach NT$25 million (US$0.
7 million, as compared to sales of $248 million and pretax earnings of $11.
If the name of the adjacent cell is made up of two words, such as Pretax Earnings in cell A3, Excel will automatically place an underline (_) between Pretax and Earnings--thus Pretax_Earnings.
1 million in 2010 pretax earnings, compared to $29.
In its Layers/Eggs business, conducted through MoArk, LLC, the company is reporting Sales of $606 million and pretax earnings of $29.
3 billion, but our pretax earnings were $381 million, just 2.
Analyst Laura Lederman estimated that the company would generate pretax earnings per share, excluding options expense, of $0.
The company had self-audited pretax earnings of NT$116 million (US$3.
Layers/Eggs sales, conducted through MoArk LLC, were $606 million with pretax earnings of $29.
0 million in pretax earnings in eggs, compared to $111 million in sales and $2.
Over a longer time horizon, FNT's financial leverage is expected to stay below 25% and pretax earnings are expected to cover interest expense by at least 10 times.