Definition
Earnings before taxes (EBT) is the company's profit before income tax expenses are deducted. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
You know Earnings before taxes (EBT) is doing work when it changes a weekly choice — price, hire, channel, or kill. The working definition: Company's profit before income tax expenses are deducted.
Common mistake
Using Earnings before taxes (EBT) as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Earnings
Company's profits after all expenses, taxes, and costs have been deducted.
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Earnings before interest and taxes (EBIT)
Profit measure before deducting interest and tax expenses.
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Earnings before interest, taxes, depreciation, and amortization (EBITDA)
Profit measure that excludes interest, taxes, depreciation, and amortization.
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Earnings call
Conference call where company executives discuss quarterly financial results.
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