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Investments glossary

Earnings Before Tax (EBT)

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Quotes of the day:

Doctors pour drugs of which they know little, to cure diseases of which they know less, into patients of whom they know nothing.

— Moliere

Earnings before tax (EBT) measures a company’s financial performance. It is a calculation of a firm’s earnings before taxes are taken out. The calculation is revenue minus expenses, excluding taxes. EBT is a line item on a company’s income statement. It shows a company’s earnings with the cost of goods sold (COGS), interest, depreciation, general and administrative expenses, and other operating expenses deducted from gross sales.

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