Earnings before taxes

Earnings before taxes is a measure of the earnings generated by a business before making any tax payments to the government. This measure includes the results of both operations and any financing activities, such as the cost of debt, and so is a good measure of the aggregate results of a business. Earnings before taxes appears as a separate line item near the bottom of the income statement, prior to any adjustments for taxes. This is a useful measure for investors and analysts, who can use it to compare the results of businesses located in different tax jurisdictions.

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