Profit after tax (PAT) is the net income a company earns after deducting all expenses, including taxes, from total revenue.
Profit after tax (PAT) is a financial ratio that represents a company's net income after deducting operating and non-operating expenses, and all taxes, including income tax, from its total revenue.
It is a key indicator of a company's financial performance and reflects the profitability of its operations after deducting all costs and taxes.
The company distributes this profit to its shareholders as dividends or retains it as earnings in reserves.
The profit after tax formula is PAT = Net Profit Before Tax – Total Tax Expense.
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