Profit Before Tax
What is Profit Before Tax?
Profit before tax measures a company's operating and non-operating profits before taxes are considered. It is the same as before taxes.
Profit Before Tax Example
Why Profit Before Tax Matters
Profit before tax provides analysts with useful information for evaluating a company's operating performance without regard to tax implications. By removing the tax factor, profit before tax helps to minimize a variable that may be unique from company to company, in order to focus the analysis on operating profitability as a singular measure of performance. Such analysis is particularly important when comparing similar companies across a single industry.