why is profit before tax important 
profit before tax may also be referred to as earnings before tax ebt or pre tax profit the measure shows all of a company s profits before tax a run through of the income statement shows the different kinds of expenses a company must pay leading up to the operating profit calculation for example gross profit deducts costs of goods sold cogs going further operating profit factors in both cogs and all operational expenses and is also known as earnings before interest and tax ebit after ebit only interest and taxes remain for deduction before arriving at net income 