Net Income per EBT
Calculate the net income per earnings before taxes (EBT), a profitability ratio that measures the net income generated for each dollar of EBT.
The net income per earnings before taxes (EBT) ratio helps evaluate the extent to which a company’s net income is generated from its operating activities before considering the impact of income taxes. It gives insights into how effectively a company generates profit relative to its taxable income.
The formula is as follows:
\[\text{Net Income per EBT} = \text{Net Income} / (\text{Net Income} + \text{Income Tax Expense})\]Earnings before tax is reconstructed from the income statement as Net Income plus Income Tax Expense rather than read from the reported Income Before Tax line, so this can differ slightly from get_tax_burden_ratio when a company reports minority interests or discontinued operations below the tax line.
Also known as: net income to pre-tax income.
Net Income per EBT in Python or via the MCP
Install the Finance Toolkit with:
pip install financetoolkit -U
Then call get_net_income_per_ebt as shown below.
from financetoolkit import Toolkit
toolkit = Toolkit(
["SAP.DE", "SIE.DE", "ASML.AS"],
api_key="FINANCIAL_MODELING_PREP_KEY",
start_date="2021-01-01",
end_date="2025-12-31",
)
toolkit.ratios.get_net_income_per_ebt()
Or, after setting up the Finance Toolkit MCP, ask:
How much of their pretax earnings did SAP, Siemens and ASML keep as net income from 2021 to 2025?
Which returns:
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| ASML.AS | 0.8521 | 0.8529 | 0.8452 | 0.8184 | 0.8268 |
| SAP.DE | 0.7576 | 0.6123 | 0.7791 | 0.6593 | 0.7087 |
| SIE.DE | 0.7387 | 0.576 | 0.7535 | 0.7816 | 0.7935 |
Parameters
get_net_income_per_ebt accepts the following parameters.
| Parameter | Type | Description | Example |
|---|---|---|---|
rounding | int | None | The number of decimals to round the results to. Defaults to None, which uses the rounding of the Toolkit (4 unless set otherwise). | 2 |
growth | bool | Whether to calculate the growth of the ratios. Defaults to False. | True |
lag | int | list[int] | The lag to use for the growth calculation. Defaults to 1. | 4 |
compound | bool | Whether the growth is the compound annual growth rate over the lag (e.g. lag=5 for the five-year CAGR) instead of the total change. Defaults to False. | False |
standardize | bool | Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False. | True |
trailing | int | The number of periods to sum flows (income and cash flow statement items) over, with balance sheet items averaged over the same number of period ends. E.g. 4 with quarterly data gives the trailing twelve months (TTM) and 3 with annual data a three-year cumulative figure. Defaults to None, which uses single-period flows (per quarter and not annualized with quarterly data). | 4 |