Pretax earnings or profits

(redirected from Pre-Tax Profits)

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.
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.
Five of the top six banking companies in Japan reported sharp year-on-year growth in pre-tax profits for the April-September period in 2010.
ENGINEERING group GKN yesterday more than doubled pre-tax profits after its aerospace division overcame delays to the Airbus super-jumbo programme.
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 EUR1.5 million.
nAIRPORTS operator BAA is forecast to report a modest rise in third quarter pre-tax profits when it reports tomorrow.
The Austrian electricity company EVN has announced a 14% decline in pre-tax profits to Euro 56.8 million at the end of the first quarter of the 2000-2001 financial year.
RETAILING to credit checking group GUS says its key businesses had reported their highest-ever results as it posted a 15% increase in pre-tax profits to pounds 406m.
Companies reporting included: Abbot Group full year pre-tax profits were pounds 5m (pounds 10m), EPS 25.8p (4.3p), dividend 4p (3.5p).
Coats full year pre-tax profits were pounds 45m (pounds 23m), EPS 4.2p (1.4p), total dividend 4p (3p) Greggs full year pre-tax profits were pounds 36.7m (pounds 32.7m), EPS 205.5p (190.2p), total dividend 72.5p (65p).
Amec final pre-tax profits were pounds 39.2m (pounds 80.7m), EPS 3.7p (13.7p), total dividend 10p (15.9p).
HSBC final pre-tax profits were pounds 6.13 billion (pounds 5.09bn), EPS 48p (40p), total dividend 34p (30p) Inchcape final pre-tax profits were pounds 108.6m (pounds 61m), EPS 100.1p (29.3p), total dividend 31p (26p).