Profit before tax
The company's result after interest on its debt but before income tax.
Formula
\text{Profit before tax} = \text{Operating profit} \pm \text{Finance items}A line of the income statement. Finance items are interest paid and received, currency effects and the revaluation of financial investments.
How to read the number
Separates the question of how well the business and its debt work from the question of a tax regime that depends on jurisdictions and reliefs.
When the metric lies
Between this line and net income sits deferred tax, which is unrelated to what was actually paid to the budget this year.
Also known as: pre-tax profit