Pretax Income

What is Pretax Income?

Pretax Income is a company's revenue after deducting all operating and non-operating expenses, but before deducting income taxes.

What is Pretax Income used for?

In some cases, pretax income is a more indicative metric of a company's financial well-being than net income. Tax deductions depend on a large number of factors that may change over time. Therefore, pre-tax income is a clearer and more consistent metric, since it removes inconsistent differences caused by the taxation differences of a particular period.

How is Pretax Income calculated?

Pretax income is the sum of Operating Income and Non-Operating Income.

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