Pretax earnings or profits

(redirected from Pretax Profit)

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 ?
27 October 2011 - German online brokerage Comdirect Bank AG (ETR:COM) today upgraded its full-year pretax profit target on the basis of strong financial figures registered for the first nine months of 2011.
on Thursday forecast that 300 major Japanese firms will expand their combined pretax profit 14.
Volkswagen AG (VW) (Xetra: VW), a Germany-based automaker, is expected to decrease its pretax profit for the second quarter of 2010.
Denso now expects a group net profit of 10 billion yen, down from its initial projection of 101 billion yen, and a pretax profit of 59 billion yen, down from 205 billion yen, on sales of 3.
CO), Denmark's third-largest bank, has reported a 27 percent drop in pretax profit for the first-half ended June 30, which according to Reuters was below its analysts' forecasts.
The earnings forecast for fiscal 2006, which ends in March, remains unchanged from projections made as of May, with group net profit estimated at 500 billion yen and pretax profit at 1.
As compared with the previous business year, the company expects fiscal 2006 pretax profit to decline on lower broadcasting revenue and fewer entertainment events being held although net profit is seen rising.
UK-based budget airline easyJet has upgraded its pretax profit forecast for the current financial year.
The company said it now expects to post a group net profit of 66 billion yen and pretax profit of 95 billion yen on sales of 500 billion yen.
Showa Shell also reported a consolidated pretax profit of 29.
formed April 1 through the merger of two life insurers, said Friday it saw its pretax profit fall in fiscal 2000 on lower operating revenues.
the second largest brokerage, reported a pretax profit of 177.