标题: Common-sized Income Statements [打印本页] 作者: glamorous 时间: 2011-7-13 14:10 标题: Common-sized Income Statements
Why does the material say that looking at the effective tax rate is better than looking at the common-sized number for presenting Income Tax Expense?作者: ramzes 时间: 2011-7-13 14:10
because the CS % is from revenues, not EBT作者: spartanag07 时间: 2011-7-13 14:10
Just going to elaborate a bit on what js said.
For taxes you are interested in the percentage of earnings before tax that the company is paying out in taxes (effective tax rate), not the percentage of sales that it pays out as taxes (which is what a common-size percentage based on revenues indicates).作者: Benjiko 时间: 2011-7-13 14:10
