Returns & Safety
What is Effective Tax Rate?
The share of pre-tax profit paid as income tax.
How it is calculated
Income tax expense divided by income before tax.
How to read it
Unusually low rates may not last. A rate far from the statutory 21% is worth a look in the tax note.
Where the numbers come from
Scrutar computes Effective Tax Rate from the figures each company reports to the SEC in its annual and quarterly filings, using the XBRL data attached to those filings.