Earnings Before Income Taxes

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.

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