Calculation: Sales less all expenses except Inventory Turns (and Adjustments).
Example: The Round Number CompanySales = 200; COS = 80; OpEx = 72; Finance = 8 EBT = 200 - 80 - 72 - 8 = 40 |
Earnings Before Tax is the amount of Profit available after deducting from Sales the costs associated with the operations of the company (Cost of Sales, SG&A) as well as finance charges, but before paying taxes.
term list.