Earnings Before Taxes (EBT)

Earnings Before Taxes (EBT) is a profitability measure that represents a company’s income after accounting for operating expenses and interest but before income tax expenses are deducted.

Formula:

EBT = Net Income + Taxes

EBT reflects the company’s profitability from all operations — including interest income or expenses — and is influenced by both operational performance and financing decisions. It's an important figure in financial analysis as it isolates the impact of taxes, which vary by jurisdiction.