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 ?
Pretax earnings were also positively impacted by a USD 178,000 reduction in pretax loss of the wealth management segment that resulted in near break-even performance for the 1Q14 when compared to the 1Q13.
Time and again, we have found that a focused and aggressive restructuring effort that radically departs from conventional wisdom can double pretax earnings in 18 months.
1% improvement in pretax earnings, despite a small slide in sales.
Pretax earnings increased 27% for the month of December 2006 to $51,000, compared to $40,000 in December 2005.
Crop Inputs--Greater than $200 million in pretax earnings were achieved for the second consecutive year, and
Excluding that item, adjusted pretax earnings were still down 18.
The airline posted pretax earnings of GBP68m for the year to end-February, compared with GBP20.
The categories are in column A and the data in column B: Revenue is B1, Expense is B2, Pretax Earnings is B3, Income Tax is B4 and Net In-come is B5.
Tyson said it expects the initiatives to have a positive impact on pretax earnings of about $10 million to $15 million annually, or 2 cents to 3 cents a share, beginning in fiscal 2004.
At Spirit, he exceeded financial and performance goals for the first time in the four-year history of the business unit - with pretax earnings exceeding $500 million in 2000.
For the 24-week period Giant's pretax earnings were $79.
Putnam contributed more than one-third of MMC's pretax earnings in 2001, but currently accounts for only about 20% of MMC's profits.