Monday, July 28, 2014

Profitability Indicator Ratios: Effective Tax Rate

   Series : Ratio Analysis    (7 th Post)

This Ratio helps us to understand the Tax Rate of a Corporation/Company.For calculating this Tax we use Income Tax Expense & Pre tax  Income.

Formula:  Effective Tax Rate % =  Income Tax Expense /  PreTax Income

Go to  Website  here is  an Online Link for the same                            Select the Ratios under the Financials Tab  & look for the  “ Profit Before Interest And Tax Margin(%) “

Next Post on Ratio Analysis:  Profitability Indicator Ratios (Return On Assets)

In my quest for learning value investing I came acrros this interesting article and thought would like to share this with the community
Comments  / Improvements and points worth considering are welcome

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