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  
Term of the Day Email this Definition Link to this Definition

Before-tax Income

FYI - For 2011, Dow up, Dogs of the Dow up more (double digits)
 

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...



Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.


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


Home | Term of the Day | Suggest a Term
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Chart of the Day | Dogs of the Dow | Art of the Home
©2004-2012 Investor Glossary - All rights reserved - Terms of Use