Earnings after tax (EAT) is the amount of profit remaining after all expenses, including interest and taxes, have been subtracted from total revenue. It represents the net income available to shareholders.
For example, a retail company reports total revenue of $2 million, subtracts operating expenses of $1.4 million and interest of $80,000, then pays $120,000 in income taxes — leaving earnings after tax of $400,000, which is the profit available to shareholders.
.avif)
.svg){kind=small}