Effective Tax Rate
The share of a company's pre-tax profit it actually pays in income tax, shown as a percentage.
What it is
The effective tax rate is the income-tax expense a company reports divided by its pre-tax income. Unlike the statutory rate set by law, it reflects what the company actually bears after deductions, credits, foreign-rate differences, and timing items. It is a single percentage summarizing the real tax burden for the period.
Why it matters
The effective tax rate explains part of the gap between pre-tax and net income and signals how tax-efficient a company is. The pitfall is volatility: one-time credits, settlements, or changes in tax law can push the rate far from its normal level, so a single year can be misleading and the trend matters more than one figure.
How it's calculated
Divide reported income-tax expense by pre-tax income (earnings before tax) for the same period.
How Quintarthai uses it
The inputs — income-tax expense and pre-tax income — appear in the 10-year income statement on the Financials tab of each company page, so you can track the effective tax rate over time.