Pretax earnings or profits

(redirected from Pretax 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 ?
Five of Japan's top six banking groups on Friday reported sharp year-on-year growth in their respective group pretax profits for the April-September first half of fiscal 2010.
The company also revised downward all its estimates of net and pretax profits as well as sales both on a group and parent-only basis.
The company also revised its projection for the entire fiscal year to net and pretax profits of 11 billion and 18 billion yen, respectively, and sales of 500 billion yen.
For the current business year, Showa Shell is expecting consolidated net and pretax profits of 21 billion and 40 billion yen on group sales of 1.
said Thursday its group registered record net and pretax profits in fiscal 2000, largely on windfall foreign exchange gains on a weak yen.
7 billion yen more in pretax profits than it had earlier forecast.
For the 21 capabilities that have particularly high impact on company profit across industries, it was determined that even moderate improvements could result in additional pretax profits of $40 to $50 million a year for a typical $1 billion business unit.
reported Thursday record group net and pretax profits on record sales in the April-September first half of fiscal 2002.
NTT) have bolstered their unconsolidated pretax profits for the first half of fiscal 1999 due partly to the success of restructuring efforts, according to financial results released by Thursday.
But when compared with combined pretax profits of the two Mitsui companies, Mitsui Chemicals' pretax profit posted a gain of nearly 30 % as a result of cost-cutting efforts that saved some 8.
Sony reported gains in both sales and pretax profits for the first half thanks to relatively strong sales of TV and video equipment.
38 per share compared to pretax profits of $1,008,000 with net income of $719,000 or $.