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.