Earnings before taxes (EBT) is a company’s revenue minus expenses before taxes are taken out. A healthy EBT can help a company weather economic downturns, service debt obligations, and receive better interest rates from lenders. Investors use EBT to evaluate a company’s financial stability and predict investment returns. Earnings before taxes, or EBT, is the […]
Pre-tax deductions reduce the amount of taxable wages an individual owes tax on, including FICA taxes. They incentivize responsible planning for health care and retirement expenses, and include health care premiums, retirement savings accounts, and flexible spending accounts. Tax credits are more valuable than deductions. Pre-tax deductions are deductions that can be used to discount […]
Pre-tax income is the income earned before taxes are deducted and can be important for shareholders, budgeting individuals, and those seeking financial aid. Understanding the difference between income before and after taxes can help with evaluating earnings and financial benefits. Retirement investments can also reduce tax payments. Pre-tax income is simply the income a business […]
Profit before tax (PBT) is a measure of corporate profitability reported on a company’s income statement, describing earnings before taxes. Calculating PBT can provide useful information about a company’s operating efficiency and allow for comparison between companies subject to different tax laws. An investor should compare PBT to ensure apples are being compared to apples […]
