Pretax Income (EBT)
Also called EBT
Pretax income is the amount of money earned before taxes are subtracted.
Example
Revenue = $500
COGS = $200
OpEx = $200
D&A = $25
Interest = $25
Pretax Income (EBT) = 500 - 200 - 200 - 25 - 25 = $50
In the room
EBT is a checkpoint in the walk-down from revenue to net income. Interviewers rarely ask about it directly, but they'll notice if you skip it or fumble the order of operations when walking through the income statement.