Earnings before taxes is the money retained by the firm before deducting the money to be paid for taxes. E.B.T includes the money paid for interest. Thus, it can be calculated by subtracting the interest from EBIT (Earnings Before Interest and Taxes).
EBT = EBIT - Interest Cost
Famous quotes containing the words earnings and/or taxes:
“The earnings of a poet could be reckoned by a metaphysician rather than a bookkeeper.”
—Edward Dahlberg (1900–1977)
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—Albert Camus (1913–1960)