Pre-tax income
The subtotal entitled “income before income taxes” represents both operating income and non-operating income and is the equivalent of an individual’s taxable income. The actual taxes paid will probably differ somewhat from this amount for a variety of reasons, resulting in deferred tax assets or liabilities on the balance sheet.
For more information, see all articles on: Accounting, Financial Statement Analysis, Fundamental Analysis See also:
The Intelligent Investor: The Classic Text on Value Investing
Financial Statement Analysis: A Practitioner's Guide, 3rd Edition
Managing Investment Portfolios: A Dynamic Process (CFA Institute Investment Series)
