Profit before income tax
Operating profit with financial income and costs added, before income tax is deducted.
This line takes operating profit, adds financial income (interest, dividends received, exchange gains) and subtracts financial costs (loan interest, exchange losses). In the Finnish format a further line for appropriations sits between it and the bottom line.
The gap between this and net profit is income tax. Where the gap is well under the 20% corporate rate, the usual reasons are confirmed losses carried forward from earlier years or tax-exempt income.
Where this figure comes from
Read from the income statement in the annual financial statements.
Related terms