Profit Before Tax (PBT)

Profit Before Tax (PBT), also known as Pre-Tax Income or Earnings Before Tax (EBT), is a company's total earnings calculated after deducting all operating and non-operating expenses—including interest payments—but before income tax is applied. PBT = Operating Profit + Other Income – Interest Expense. Analysts use PBT to compare profitability across companies in different tax jurisdictions or those with varying effective tax rates, as it isolates operational and financial performance from the impact of varying tax regimes.