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LSDefine
Simple English definitions for legal terms
EAT
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A quick definition of EAT:
Term: EAT
Definition: EAT stands for Earnings After Taxes. This means the amount of money a company makes after they have paid all their taxes. It's like when you get your allowance, but after your parents take out money for taxes like your school lunch or other expenses. EAT is an important number for companies because it shows how much money they have left to use for things like paying their employees or investing in new projects.
A more thorough explanation:
EAT
EAT stands for Earnings After Taxes. It is the amount of money a company earns after paying all its taxes.
For example, if a company earns $100,000 in revenue and pays $20,000 in taxes, its EAT would be $80,000.
Another example would be if a company earns $50,000 in revenue and pays $10,000 in taxes, its EAT would be $40,000.
These examples illustrate how EAT is calculated by subtracting the amount of taxes paid from the total revenue earned by a company. It is important for investors and analysts to look at a company's EAT to understand its profitability and financial health.