Pretax rate of return

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Pretax rate of return

Gain on a security before taxes.

Pretax Rate of Return

The rate of return on an investment before capital gains or other taxes. Most of the time, when one sees a calculation of the rate of return it is the pretax rate of return. For a tax-free investment, the pretax and post-tax rates of return are identical.
References in periodicals archive ?
From 2007 through 2011, the average pretax return on equity for community banks nationwide deteriorated to 13.
RBI, which was created by the merger of Austrian Raiffeisen Zentralbank and its subsidiary Raiffeisen International (WBAG:RIBH), reported an improvement in pretax return on equity of 3.
Germany's biggest bank is aiming for a pretax return on equity of 25 percent over the business cycle and 8.
The ratios shown include the fixed-charge ratio, interest-coverage ratio, liquidation-coverage ratio, debt-to-equity ratio, the return on equity and the pretax return on total capitalization.
But if the funds are in retirement accounts, then they are tax sheltered, and pretax return is the same as after-tax return.
Breeden also said, "We continue to focus on our goal of achieving a 10-12% pretax return on shareholders' equity during 2006 or 2007, by concentrating on the growth of quality loans, while we lower our net non- interest expense.
Pretax return on sales - including the one-off item - increased from 7.
The tax advantage associated with the ETFs was roughly offset by a higher pretax return for the traditional index fund during our sample period.
Pretax return on invested capital rose dramatically-from 9% to 12.
If cash dividends are taxed more heavily than these capital gains, the risk-adjusted pretax return during the ex-dividend period will exceed the risk-adjusted pretax returns during other periods.
75 percent, the pretax return on equity increases dramatically, and particularly for bank-based mortgage companies, which are normally able to achieve higher leverage ratios.
The impact of lower effective tax rates has been to allow more of the pretax return to flow through to suppliers of capital, i.