The Full Form of PBDIT is‍ Profit before Deduction of Income Tax.

Profit before tax is a measure that looks at a company’s profits before the company has to pay corporate income tax. It essentially is all of a company’s profits without the consideration of any taxes.

Profit before tax can be found on the income statement as operating profit minus interest. Profit before tax is the value used to calculate a company’s tax obligation.

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. Gross profit deducts costs of goods sold (COGS). Operating profit factors in both COGS and all operational expenses. Operating profit is also known as earnings before interest and tax (EBIT). After EBIT only interest and taxes remain for deduction before arriving at net income.

KEY TAKEAWAYS