Pre-Tax Income EBT
A company's profit after all expenses except income tax — the base that income tax is applied to.
What it is
Pre-tax income, also called earnings before tax (EBT), is the profit remaining after every expense — including interest — has been deducted, but before income tax. It is the line on the income statement directly above net income. From pre-tax income you subtract income-tax expense to arrive at net income.
Why it matters
Pre-tax income shows how profitable the business is independent of its tax bill, which can swing year to year due to credits, loss carryforwards, or one-off items. Comparing pre-tax income to the tax expense also reveals the company's effective tax rate.
How it's calculated
Take EBIT and subtract interest expense (or take net income and add back income-tax expense). The result is the income on which income tax is calculated.
How Quintarthai uses it
Pre-tax income is shown alongside the full income statement on the Financials 10-yr and Classic View tabs of a company's deep-analysis page — open a company page.