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Terms Beginning with E
       
       
 

Effective Tax Rate

Financial Term


Effective Tax Rate (ETR) is defined as the percentage of income which is paid as taxes by an individual or a corporation. It is calculated by dividing the total tax liability by taxable income.

ETR is an important metric used in the financial industry to determine the tax efficiency of a company. By comparing the ETR of various companies, analysts can assess which companies are paying more or less in taxes relative to their income. A higher ETR suggests that a company is paying a greater proportion of its income in taxes, which may indicate inefficiencies in the tax structure or potential opportunities to optimize taxes.

In addition, ETR is used by investors to evaluate the tax liabilities and potential risks associated with investing in a particular company. By analyzing the ETR of a company over time, investors can make informed decisions about potential future tax liabilities and assess the overall tax risk of a company.

Overall, Effective Tax Rate is an important financial metric used by analysts and investors to evaluate a company's tax efficiency and potential risks associated with tax liabilities.




   
     

Effective Tax Rate

Financial Term


Effective Tax Rate (ETR) is defined as the percentage of income which is paid as taxes by an individual or a corporation. It is calculated by dividing the total tax liability by taxable income.

ETR is an important metric used in the financial industry to determine the tax efficiency of a company. By comparing the ETR of various companies, analysts can assess which companies are paying more or less in taxes relative to their income. A higher ETR suggests that a company is paying a greater proportion of its income in taxes, which may indicate inefficiencies in the tax structure or potential opportunities to optimize taxes.

In addition, ETR is used by investors to evaluate the tax liabilities and potential risks associated with investing in a particular company. By analyzing the ETR of a company over time, investors can make informed decisions about potential future tax liabilities and assess the overall tax risk of a company.

Overall, Effective Tax Rate is an important financial metric used by analysts and investors to evaluate a company's tax efficiency and potential risks associated with tax liabilities.




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