EBT

What does EBT stand for?

Earnings before taxes

EBT is a financial acronym that directly represents a company’s profit, both operating and non-operating, but before the deduction of income taxes. Using EBT, you can get a solid understanding of a company’s financial performance.

EBT is especially useful for investors. It allows them to compare the profitability of companies that might be similar but located in different tax jurisdictions. That way, they can make more informed decisions.

So, when you see or hear the term EBT, now you know it’s a good indicator to check how a company is doing financially before the government takes its share in taxes.

Example for using ‘EBT’ in a conversation

Hey, have you seen the latest financial report for XYZ Company?

Yeah, I did! Their EBT is looking really good!

What does EBT mean again?

EBT stands for Earnings before taxes. It’s a way to measure a company’s profit before deducting income taxes.