Profit Before Tax (Pbt)

calender iconUpdated on May 03, 2023
corporate finance and accounting
financial ratios

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Sure, here is the definition of profit before tax (PBT):

Profit before tax (PBT) is the total amount of revenue generated by a company after subtracting all costs and expenses, but before paying taxes. It is also known as taxable income.

Here is the formula for calculating PBT:

PBT = Net Income – Taxes

where:* PBT is profit before tax* Net Income is the total income of the company after subtracting all costs and expenses* Taxes are the total amount of taxes paid to the government

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