Payroll and HR

Earnings before tax

Earnings Before Tax (EBT) is the total income earned by a business before taxes are deducted.

For example, if a business generates $100,000 in revenue and incurs $20,000 in expenses during a fiscal year, its EBT would be $80,000. Understanding EBT is crucial for assessing a company's profitability before tax obligations are considered and helps stakeholders make informed financial decisions.