Pretax earnings or profits

(redirected from Pre-Tax 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 ?
As part of the UAW-Ford collective bargaining agreement, Ford North America pre-tax profits of $8.
Barclays Bank (LON: BARC) first quarter pre-tax profits dropped by 25 percent following reserves created to pay for a planned overhaul of its operations.
Despite the drop in pre-tax profits, the company expects to open a further 55 sites in the financial year.
If the results are favorable and the entrepreneur decides to go forward, he/she will have an awareness of the maximum personal living expenses which can be covered by projected pre-tax profits, thereby reducing the risk of substantial (and potentially fatal) increases in indebtedness.
Virgin Atlantic said their pre-tax profits for the year to February rose pounds 6million to pounds 34.
Underlying pre-tax profits came in 3% higher than last year at pounds 5.
Banking giant HSBC yesterday reported a 5% lift in pre-tax profits to pounds 11.
Despite the US problems, HSBC's profit performance brings the combined pre-tax profits posted by the "big five" banks to pounds 37.
Barclays Wealth sees BA reporting pre-tax profits of pounds 222m compared to pounds 241m last year.
Overall pre-tax profits for the half-year period were still ahead of market expectations, following a 37% rise to pounds 3.
PRE-TAX profits at C&D Foods, the pet food company owned by the family of former Taoiseach Albert Reynolds, pictured, fell 35 per cent in 2002, to EUR1.
Analysts forecast pre-tax profits of pounds 54m compared to losses of pounds 10m last year.