Returns & Safety
What is the 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 below the 21% federal statutory rate is worth a look in the tax note.
Where the numbers come from
Scrutar computes the 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.