Pretax earnings or profits

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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 registered a group pretax profit of 794 billion yen for the first fiscal half ended in September.
Toyota's net profit jumps 93.9% in 3rd qtr on brisk sales
The company engineered a sixfold jump in pretax profit to 13.2 billion yen by cutting back on various types of expenses, such as personnel costs, lease charges and transportation costs.
3 major telecom carriers bolster pretax profits
Group pretax profit jumped 5.2% to 19.14 billion yen.
Sony Music's 1st-half group net profit up 8.7%
But when compared with combined pretax profits of the two Mitsui companies, Mitsui Chemicals' pretax profit posted a gain of nearly 30 % as a result of cost-cutting efforts that saved some 8.5 billion yen.
6 major petrochemical firms post dismal results
Nippon Steel and Kobe Steel revised upward their operating and pretax profit forecasts for the first six months of fiscal 2008 from those they released April 25, partly due to efforts to pass on higher costs to users via product price markups.
4 steelmakers post higher 1st-qtr. sales, expect lower FY 2008 profits
said Wednesday its group net profit surged 54.0% in the first half of fiscal 2002 from a year earlier as pretax profit doubled on better sales, a weaker yen and cost-cutting efforts.
Yamaha Motor group pretax profit doubles on better sales
On an unconsolidated basis, NTT now expects a pretax profit of 112 billion yen and a net profit of 93 billion yen against the earlier projected pretax profit of 93 billion yen and net profit of 77 billion yen.
NTT ups earnings projections for FY 1999
Consolidated pretax profit plunged 50.4% to 30.44 billion yen on group sales of 1,132.54 billion yen, down 8.4%.
Matsushita Electric Works reports profit, sales drops
posted a 20.4% fall in pretax profit, battered by a decline of 58.4 billion yen in sales in its petrochemical division alone.
6 major petrochemical firms post dismal results
Pretax profit came to 293.05 billion yen, down 8.9 percent, MUFG said.
MUFG, Mizuho incur double-digit net profit falls in April-June qtr
Denso said it posted a group pretax profit of 81.32 billion yen, up 20.2%, on sales of 1.14 trillion yen, up 4.9%.
Denso reports record interim group earnings on increased sales
Consolidated pretax profit came to 404.55 billion yen, up 15.4%, on revenues of 4,711.69 billion yen, up 1.6%.
NTT group's interim net profit surges 49 pc
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