Quick Definition
Company profit recorded before income taxes are subtracted.
Explanation of Earnings Before Income Taxes
Also called simply Earnings Before Taxes, or Income Before Taxes and listed in the Income Statement, the Earnings Before Income Taxes is the company's profit shown before income taxes are subtracted.
Importance of Earnings Before Income Taxes
Earnings Before Income Taxes is often used to estimate the
Tax Rate by dividing the Earnings Before Income Taxes by the
Income Tax.
