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Earnings before taxes (EBT) |
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Earnings before taxes (EBT)A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. In other words, operating and nonoperating profit before the deduction of income taxes.Earnings before taxes (EBT) Similar MatchesRetained earningsRetained earningsThe proportion of a company's profits after tax which are not paid out as dividends but reinvested in the company. State Earnings Related Pension SchemeState Earnings Related Pension SchemeA government scheme introduced in April 1978 which enables employees (but not the self-employed) to top up the basic pension they receive on retirement with additional pension payments based on their earnings.Employees make payments to SERPS by way of Class 1 National Insurance (NI) contributions. They can 'contract out' of SERPS and pay Class 1 contributions via a rebate which may be invested in an occupational pension or a personal pension plan.SERPS was replaced in April 2002 with the 'State Second Pension' which is designed to give more to the lower paid and middle earners, carers and the long-term disabled with broken work records. Whereas with SERPS, the more you earn, the higher your pension, S2P operate a flat rate which means that high earners will be better off opting for private pension schemes. Primary earnings per (common) sharePrimary earnings per (common) shareEarnings available for the payment of dividends to common stockholders divided by the number of common shares outstanding. Taxable earningsTaxable earningsThe amount of an individual's annual income on which tax is payable defined as:Taxable earnings = Income - Reliefs - AllowancesThe main reliefs are pension contributions and donations to charity. The main allowances are the 'personal allowance' which every individual has (£4,615 for people under 65 in 2003-2004) and the Married Couples Allowance for couples where one spouse is 65 or over.So someone with Income of £20,000 who has made pension contributions in the year of £1,000 will have Total Income of £19,000, and his Taxable Income will be £19,000 less a personal allowance of £4,615 = £14,385.The amount of tax he has to pay will be determined by the tax bands in operation in the year in question. For 2003-2004, the bands are:£1-£1,960: tax rate is 10% (starting rate) - tax on band is £196£1,961-£30,500: tax rate is 22% (basic rate) - tax on band is £6,278.58Over £30,500: tax rate is 40% (higher rate) Net relevant earningsNet relevant earningsA person's pensionable income (that is, income from employment) plus taxable benefits in kind, less any allowable business expenses but before deduction of personal allowances. For self employed people these are taxable profits less capital allowances or losses from previous years. Further SuggestionsEarnings before interest and, taxes (EBIT)Earnings before interest, taxes, and depreciation (EBITD) Pretax earnings or profits Earnings lower earnings limit band earnings Earnings price ratio normalised earnings Earnings yield earnings per share Earnings momentum Earnings before interest after taxes (EBIAT) earnings yield Earnings response coefficient adjusted earnings Earnings retention ratio Earnings Retained earnings price earnings ratio (P/E ratio) price earnings growth factor Accounting earnings earnings cap Normalized earnings Quality of earnings earnings factor |
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