Originally Posted by
Name User
Dude!!
Pre-tax income is the same thing as pre-tax profit!
It's not revenue, like you stated. You're backtracking. (It's OK to be incorrect once and a while
).
"Pretax earnings are a company's earnings after all operating expenses, including interest and depreciation, have been deducted from total sales or revenues, but before income taxes have been subtracted.
Also known as "pretax income" or "earnings before tax"."
Pretax Earnings Definition | Investopedia
BOTTOM LINE
The company will be making $800 million a year in PROFIT (not revenue, BIG DIFFERENCE) on just credit cards in 2018 and beyond! That's nuts!
I took accounting.
I hated it, but it taught me that there are a zillion things that can happen to money between income and profit.
Point is, the company could spend it on dividends, capital expenditures, bonuses, debt pay downs, and such-yet still show a lower profit, or even a loss.
Corporate accounting is where people get paid well to lie, cheat and steal (maybe not in the legal sense-but certainly in the moral sense.) A lot can happen between revenue and profit.