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.

No programming experience? With the Finance Toolkit MCP server, AI assistants such as Claude and ChatGPT can calculate the Net Income per EBT for you. Just ask in plain English.

Calculate the Net Income per EBT in Python

The Net Income per EBT is available in the Ratios module of the open-source Finance Toolkit. Install it with:

pip install financetoolkit -U

Then call get_net_income_per_ebt as shown below.

from financetoolkit import Toolkit

toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")

net_income_per_ebt_ratios = toolkit.ratios.get_net_income_per_ebt()

Which returns:

  2021 2022 2023 2024 2025
AAPL 0.867 0.838 0.8528 0.7591 0.8439
TSLA 0.8878 0.9175 1.5002 0.7951 0.7272

Parameters

get_net_income_per_ebt accepts the following parameters:

  • rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
  • growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
  • lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
  • standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
  • trailing (int): Defines whether to select a trailing period. E.g. when selecting 4 with quarterly data, the TTM is calculated.
Return on Assets (RoA) Return on Equity (RoE) Return on Invested Capital (RoIC) Income Quality Ratio Return on Tangible Assets (RoTA) Return on Capital Employed (RoCE) Free Cash Flow Operating Cash Flow Ratio Tax Burden Ratio EBT to EBIT EBIT to Revenue Cash Tax Rate Tax Rate Divergence

The Ratios module page introduces the module, and the sidebar lists all of its functions.

Share