Pretax earnings or profits

(redirected from Pretax Profit)

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 ?
BANKING AND CREDIT NEWS-July 23, 2012--Public Bank Group's pretax profit rises to USD785m in H1 2012(C)2012 M2 COMMUNICATIONS http://www.
-Public Bank Group's pretax profit rises to USD785m in H1 2012
M2 EQUITYBITES-July 23, 2012--Public Bank Group's pretax profit rises to USD785m in H1 2012(C)2012 M2 COMMUNICATIONS http://www.
-Public Bank Group's pretax profit rises to USD785m in H1 2012
27 October 2011 - German online brokerage Comdirect Bank AG (ETR:COM) today upgraded its full-year pretax profit target on the basis of strong financial figures registered for the first nine months of 2011.
-German Comdirect lifts pretax profit target for 2011
on Thursday forecast that 300 major Japanese firms will expand their combined pretax profit 14.
Major Japanese firms projected to boost pretax profits 14.9% in FY 2011
Volkswagen AG (VW) (Xetra: VW), a Germany-based automaker, is expected to decrease its pretax profit for the second quarter of 2010.
VW expects decrease in Q2 pretax profit
In the reporting period, pretax profit rose to EUR287m from EUR169m in the same quarter a year earlier.
Finnish Sampo net profit doubles to EUR 245m in Q1 2010
Denso now expects a group net profit of 10 billion yen, down from its initial projection of 101 billion yen, and a pretax profit of 59 billion yen, down from 205 billion yen, on sales of 3.
Denso to fall into red in FY 2008 on parent-only basis
CO), Denmark's third-largest bank, has reported a 27 percent drop in pretax profit for the first-half ended June 30, which according to Reuters was below its analysts' forecasts.
Denmark's Sydbank reports 27% fall in pretax profit
The earnings forecast for fiscal 2006, which ends in March, remains unchanged from projections made as of May, with group net profit estimated at 500 billion yen and pretax profit at 1.
NTT midterm group net profit slumps 11.9 percent on cost rises
As compared with the previous business year, the company expects fiscal 2006 pretax profit to decline on lower broadcasting revenue and fewer entertainment events being held although net profit is seen rising.
Fuji TV's April-June group net profit jumps 42.4%
UK-based budget airline easyJet has upgraded its pretax profit forecast for the current financial year.
easyJet raises forecast for full-year profit
The company said it now expects to post a group net profit of 66 billion yen and pretax profit of 95 billion yen on sales of 500 billion yen.
Nintendo cuts earnings estimates due to weaker console sales
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