Investor Glossary-before-tax incomeInvestor Glossary-before-tax incomeInvestor Glossary-before-tax incomeInvestor Glossary-before-tax incomeInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Before-tax Income

The HTML to link to this page
 

Before-tax income, also known as pretax income, is the amount of income the company has generated before it pays Federal, state, and local income taxes. Before-tax income is a useful financial indicator because income taxes, while a cost of doing business, is substantially determined by governments and somewhat out of the control of company managements. Moreover, unlike net income, before-tax income excludes extraordinary (or one-time) items. Thus before-tax income can often give a better sense than net income of the company's core business strength. Before-tax income is often expressed as a percentage of revenue, also known as the pretax margin. Expressed as such a percentage, before-tax income can be usefully compared among companies with similar activities and of similar size.



Rate this before-tax income definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: quality assurance, minority interest, command economy, Zero Cost Collar, APR, annual return, Key Rate Duration, average price per share, ex-dividend date, phantom income, risk management, in escrow, EBITDA, diluted share, option premium, cancelled check, covered put, required rate of return, labor relations, VIX, balance sheet, current ratio, LIBOR, real GDP, 401a, debt service coverage, 1031 exchange, margin rate, 144a, liquidity ratio, class C shares, wholly-owned subsidiary, deferred tax, irrevocable trust, 1035 exchange, stock market close, deferred revenue, implied volatility, reverse mortgage, retained earnings, dividends payable, inflation, stock split, open position, limit order, ex-dividend, FICO score, FTSE, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use