Effective tax rate | tax rate คือ

Effective tax rate

นอกจากการดูบทความนี้แล้ว คุณยังสามารถดูข้อมูลที่เป็นประโยชน์อื่นๆ อีกมากมายที่เราให้ไว้ที่นี่: ดูเพิ่มเติม

Understanding the effective tax rate can be very helpful in analyzing financial statements. Let me show you why! When financial analysts review an income statement, one of the first things they do is calculate top line growth and bottom line growth. Here’s the top line (revenue) for three years for Microsoft. In absolute terms, revenue increased from $97 billion in 2017 on the right to $110 billion in 2018 in the middle to $126 billion in 2019 on the left. The growth rate from 2017 to 2018 is 14%. The growth rate from 2018 to 2019 is 14% as well. Which growth rates do you expect for Net Income? Growing faster than revenue? Growing at the same rate as revenue? Growing, but slower than revenue? Or fluctuating more wildly?
0:00 Top line growth vs bottom line growth
1:45 Provision for income taxes
2:32 Effective tax rate calculation
3:16 Statutory tax rate vs effective tax rate
4:25 Foreign earnings taxed at lower rates
5:50 Effective tax rate analysis
Here’s the bottom line (net income) for the same years. Net income in 2018 declined from net income in 2017 by 35%: from $25 billion to $17 billion. Net income in 2019 increased by 137% compared to 2018: from $17 billion to $39 billion. There are two ways to start analyzing this: working our way down the income statement from revenue through gross margin through operating income, or working our way up the income statement from net income. Let’s see what shows up if we go up the income statement starting from the bottom line.
The lines in the income statement straight above net income are income before income taxes, and provision for income taxes. Income before income taxes minus provision for income taxes equals net income. Income before income taxes grew at 22%, and then 20%, more in line with the revenue growth of 14% per year. If revenue grows at 14% per year, and costs do not grow at that same rate, then 20 to 22% income before tax growth is a reasonable expectation. If income before income taxes is growing at stable rates, while net income fluctuates heavily, then the provision for income taxes is the line item that causes the variability.
Let’s put that provision for income taxes in perspective by calculating the effective tax rate: simply dividing the provision for income taxes by the income before income taxes, for each of the years. In 2017, $4.4 billion divided by $29.9 billion yields an effective tax rate of 14.8%. In 2018, $19.9 billion divided by $36.5 billion yields an effective tax rate of 54.6%. In 2019, $4.4 billion divided by $43.7 billion yields an effective tax rate of 10.2%.
Here’s the list of reconciling items between statutory tax rate and effective tax rate downloaded from the Microsoft annual report. A recurring line item is foreign earnings taxed at lower rates, which lowers the effective tax rate. The vast majority of the foreign, in other words nonUS, income before tax is generated in foreign regional operating centers in Ireland, Singapore and Puerto Rico. This income is taxed at rates lower than the US statutory rate, both before and after the US tax law change. The second line item is the onetime impact of the new US tax law, which actually led to significant onetime tax expenses, and therefore a higher effective tax rate than the statutory rate for Microsoft in fiscal year 2018, nearly 38% of income before taxes. Third line item is the realization of tax benefits attributable to previous Phone business losses in fiscal year 2017. Fourth line item is $2.6 billion net income tax benefit (equal to 6% of income before taxes) related to intangible property transfers. The remaining line items are much smaller in size than the first four.
In short: effective tax rate analysis can help explain fluctuations in net income, by providing a reconciliation from the statutory corporate tax rate to the effective tax rate.
Philip de Vroe (The Finance Storyteller) aims to make accounting, finance and investing enjoyable and easier to understand. Learn the business and accounting vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better investing decisions. Philip delivers financetraining in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!

See also  ไม่ได้ทำงานประจำแต่อยากสมัครประกันสังคม ดูก่อนสมัครค่ะ | ประกัน สังคม ตัว เอง
See also  BT298A만든그회사 무직막지한출정격160W 신형S299초강력앰프블루투스 5.0더이상강한것없따 | 정격출력

Effective tax rate

NYC Walk ⁴ᴷ⁶⁰ : Apple Store 5th avenue (newly remodeled) – New York

Walking in the newly remodeled Apple store of the 5th Avenue.

NYC Walk ⁴ᴷ⁶⁰ : Apple Store 5th avenue (newly remodeled) - New York

Explained: How does tax work in Australia (video)? | Rask Finance | [HD]

See also  FIXED Contact Form not Sending Email - Contact Form 7 Tutorial | 구글 smtp 설정

Explained: How does tax work in Australia (video)?

Looking for more finance and investment education?
Visit us at https://www.rask.com.au/signupinvestor/ where you’ll find FREE courses, videos, calculators, quizzes, blog posts, and more.

Explained: How does tax work in Australia (video)? | Rask Finance | [HD]

Thuế _ Logistics _ Phần 3 ~ Tax for Logistics Part 3

The link:

Thuế _ Logistics _ Phần 3 ~ Tax for Logistics   Part 3

MIT Has Predicted that Society Will Collapse in 2040

The first 1,000 fans to signup with this link will get a 1 month free trial of Skillshare
👉 https://skl.sh/economicsexplained09211
Watch \”How Not To Suck At Speaking Aussie\” 👉 https://www.skillshare.com/classes/HowNotToSuckAtSpeakingAussiePart1/1324222190
Enjoyed the video? Comment below! 💬
⭑ Subscribe to Economics Explained 👉 https://bit.ly/sub2ee
⭑ Enjoyed? Hit the like button! 👍
Q\u0026A Streams on EEII (2nd channel) → https://www.youtube.com/channel/UCOTgNyfQG4vVP5sCXrJaS4g
✉️ Business Enquiries → [email protected]
🎧 Listen to EE on Spotify! 👉 https://anchor.fm/EconomicsExplained
Follow EE on social media:
Twitter 🐦 → https://twitter.com/EconomicsEx
Facebook → https://www.facebook.com/EconomicsEx
Instagram → https://www.instagram.com/EconomicsExplained
Discord → https://discord.gg/MJGcTH6
EconomicCollapse Economics EconomicsExplained
Support EE by becoming a Patron today! 👉 https://www.patreon.com/EconomicsExplained
The video you’re watching right now would not exist without the monthly support provided by our generous Patrons:
Morgon Goranson, Andy Potanin, Wicked Pilates, Tadeáš Ursíny, Logan, Angus Clydesdale, Michael G Harding, Hamad ALThani, Conrad Reuter, Tom Szuszai, Ryan Katz, Jack Doe, Igor Bazarny, Ronnie Henriksen, Irsal Mashhor, LT Marshall, Zara Armani, Bharath Chandra Sudheer, Dalton Flanagan, Andrew Harrison, Hispanidad, Michael Tan, Michael A. Dunn, Alex Gogan, Mariana Velasque, Bejomi, Sugga Daddy, Matthew Collinge, Kamar, Kekomod, Edward Flores, Brent Bohlken, Bobby Trusardi, Bryan Alvarez, EmptyMachine, Snuggle Boo Boo ThD, Christmas

MIT Has Predicted that Society Will Collapse in 2040

นอกจากการดูหัวข้อนี้แล้ว คุณยังสามารถเข้าถึงบทวิจารณ์ดีๆ อื่นๆ อีกมากมายได้ที่นี่: ดูบทความเพิ่มเติมในหมวดหมู่Investement

4 thoughts on “Effective tax rate | tax rate คือ”

  1. 8930 311345That is the very first time I frequented your web page and so far? I amazed with the analysis you made to make this actual put up extraordinary. 869506

  2. 217880 688243Hello! I simply want to make a enormous thumbs up with the wonderful info youve here during this post. We are returning to your blog for additional soon. 805995


Leave a Comment