What is pre-tax income?

Pre-tax income, or Earnings Before Taxes (EBT), is the remaining profit after deducting operating costs (COGS, Opex) and non-operating expenses (Interest). Pre-tax income measures a company’s residual profitability, or taxable income for bookkeeping purposes, in a given period before deducting income taxes.

What is income before tax (EBT)?

EBT is sometimes also called pre-tax income, profit before tax, or income before income taxes. Earnings before tax (EBT) is a calculation of a firm's earnings before taxes are deducted. It is calculated by subtracting all expenses excluding taxes from revenue and can be found in a company's income statement.

What is earnings before interest and taxes (EBIT)?

Earnings before interest and taxes (EBIT) indicate a company's profitability. EBIT is calculated as revenue minus expenses excluding tax and interest. EBIT is also called operating earnings, operating profit, and profit before interest and taxes.