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Profit Before Tax - PBT

Profit Before Tax - PBT Definition

Profit Before Tax (PBT) is a profitability measure that shows the company's profits before the company has to pay corporate income tax. It deducts all expenses from revenue thus combining all profits including operating, non-operating, continuing operations and non-continuing operations but leaving out the payment of tax. This method is used as tax expense is constantly changing and taking it out helps to reflect changes in a company's profits from year to year.

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