Courses / Earnings Power / Pre-Tax Income

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Pre-Tax Income (2:37)

Pre-Tax Income measures the company’s earnings to shareholders before taxes. Pre-Tax Income = EBIT ± Interest Income (Expense) ± Other Income (Expense).

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Eddie Wu
4 months ago

Does this mean that companies that are in different industry will have different ETR ?
Since 2018, the rate has been reduced from 40% from 25%, which gives companies higher earning, and maybe the stock market rally before the virus. What´s your take on the ETR´s contribution to the past 2 years rally?

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