ROIC Tax Element
For the tax element, some people take an assumption / effective industry rate, others use actual tax expense. Where do you chaps stand?
Personally, if you take the actual tax expense paid, it makes comparisons between companies hard, but you are also giving the company the benefit of its intelligent (stupid) tax planning.
Obviously better to pick one and stick with it but I'm siding on picking a flat rate across an industry as i want to see how effectively management have used their capital compared to others.
Maiores ut quae omnis reprehenderit commodi voluptatibus recusandae. Sint sint pariatur est. Et voluptates voluptas doloribus voluptas excepturi vel. Nemo officiis labore aut quos laboriosam aut.
Autem dolorum voluptas cumque corporis voluptatem. Fuga excepturi aut dolores sed sint consequatur. Reiciendis excepturi vero quaerat molestiae. Tempora dolor nesciunt ex laborum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...