earnings before taxes(redirected from Earnings Before Tax)
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Earnings before taxes (EBT)
A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. In other words, operating and nonoperating profit before the deduction of income taxes.
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Earnings Before Taxes
A measure of a company's ability to produce income on its operations in a given year. It is calculated as the company's revenue less its expenses (such as overhead), but not subtracting its tax liability. EBIT represents cash available to pay off creditors in the event of liquidation, and, as such, it is closely watched, especially when comparing companies in jurisdictions with different tax laws. However, it is not as common a measure as earnings before interest and taxes.
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earnings before taxes
See pretax income.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.