Pretax earnings or profits

(redirected from Pre-Tax Profit)
Also found in: Acronyms.

Pretax earnings or profits

Net income before federal income taxes are subtracted.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
The company reported positive 2015 results due to the North American market, where it gained USD9.3bn in pre-tax profits.
The company posted adjusted pre-tax profit of USD33.4m in 2010 compared to USD10.4m in 2009.
Resona Holdings, Inc (TYO:8308) said that its group pre-tax profit increased by 51.5 per cent to JPY114.79bn, while Sumitomo Trust & Banking Co (PINK: STBUY) said its pre-tax profit expanded by 83.9 per cent to JPY61.53bn.
Both pre-tax profit and revenue for the three-month period increased, respectively from DKK31.4m and DKK416.1m, as compared to the corresponding period in 2007.
Regarding its profit guidance, the bank said that it is expecting full-year pre-tax profit to be on par or higher than results in 2009.
The company has attributed the increase in pre-tax profit has to a property sale.
Both pre-tax profit and operating income for the nine-month period increased, respectively from ISK8.0bn and ISK36.8bn, as compared to the corresponding period in 2005.
In the fourth quarter ended December 31, 2011 pre-tax profit was VND861.84bn, compared to pre-tax profit of VND454.00bn in the quarter ended December 31, 2011.
NORDIC BUSINESS REPORT-26 January 2006-Kaupthing Bank hf reports pre-tax profit of ISK62.3bn for 2005(C)1994-2006 M2 COMMUNICATIONS LTD http://www.m2.com
In the fourth quarter ended December 31, 2011 pre-tax profit was VND1.115tn, compared to pre-tax profit of VND1.498tn in the quarter ended December 31, 2010.
NORDIC BUSINESS REPORT-3 November 2005-OP Bank Group reports 9-month pre-tax profit of EUR452m(C)1994-2005 M2 COMMUNICATIONS LTD http://www.m2.com
In the fourth quarter ended December 31, 2011, pre-tax profit was VND1.365tn compared to pre-tax profit of VND777.16bn in the quarter ended December 31, 2011.