Profit Before Tax
What is PBT? What is profit before tax? How is PBT calculated? What does PBT stand for?
Profit before tax, sometimes represented by the acronym PBT, is a measure of earnings that excludes the cost of paying taxes. PBT is calculated by simply adding tax expense back into normal earnings. PBT is a useful metric because tax expense can be highly volatile year-to-year and excluding it can give a better picture of the company’s actual performance.