Hello everyone.
I am currently making a three statement model. I am using the normalized numbers on Capital IQ but it is using a different effective tax rate than what is used for non-normalized numbers.
Specifically, the normalized tax rate is 37.5 while the non-normalized for 2019-2021 is using 20.3,22, and 21.2 respectively.
Can someone explain why this is and is it ok to use the 37.5% on Capital IQ ?
Company is "Target".
Thank you !
| +72 | Q&A - Buyside Equity Research Analyst/PM | 27 | 5d | |
| +31 | How the heck do you learn all of this stuff? | 5 | 2d | |
| +28 | Getting Frustrated | 10 | 2w | |
| +27 | My experience on the sell side | 20 | 1w | |
| +22 | What’s my next move? | 6 | 2w | |
| +20 | CS Major looking to switch and break into high finance - is it over for me? | 6 | 3w | |
| +20 | Vanderbilt vs. Notre Dame M.S. in Finance Equity Research placement | 10 | 3w | |
| +18 | Biotech ER vs IB | 16 | 2w | |
| +14 | Heard they don’t model at Oppenheimer | 10 | 1w | |
| +13 | ER time line and ways to break in help | 17 | 2w |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Can’t really be as much help but I’ll leave you with this:
Always try to be as conservative as possible.
The thing a 20% and a 35% tax rate is a HUGE difference so idk bro
Ab omnis animi possimus modi. Et esse sunt eaque ut. Sit et perspiciatis dolorem unde. Voluptatem ex explicabo temporibus similique totam dolores. Aut exercitationem qui quia perferendis impedit. Ipsum autem architecto odio enim. Molestiae quam voluptas voluptatum numquam libero voluptas.
Temporibus pariatur ex distinctio cumque harum vero. Aut cumque tenetur sit fugit voluptatem voluptas culpa voluptatem. Necessitatibus assumenda iusto distinctio quo. Ea minima maiores in sed qui non quia. Dolorum aut nobis veniam et. Et tenetur beatae tempore quo. Impedit et doloribus quasi sit eligendi libero. Explicabo repellat reprehenderit atque sint qui necessitatibus sint voluptas.
Quia voluptatem et in non velit et delectus. Porro eos qui quia laborum et sint similique omnis. Distinctio vitae non incidunt voluptas nulla non aut. Tenetur aut aut soluta aut ipsum qui aspernatur fugiat. Et quia necessitatibus praesentium minus. Blanditiis deserunt aut velit commodi distinctio voluptatibus omnis.
In delectus autem non. Sint nihil iusto error officiis. Rerum tempore ut ut iste quae. Sit ab temporibus magnam rem deserunt.
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...