New ratios preview (ROIC, WACC, and more)

SZ
Sun, 15 Feb 2026 16:27:22 +0000

Hmmm it was probably scheduled/planned that way because every year a company’s tax rate can and will fluctuate a lot. For example, if everything stays the same but capex goes up they could deduct some capex. A wild example would be very high stock comp due to appreciating shares nullifying the entire tax paid. Then there is also federal, local, and state law changes. Then there is the question of what percentage of income is foreign and earned by subsidiaries. Deferred tax (timing issues). Past loss carryforwards. And many more I am not thinking of right now. Probably would use the median subsector or industry myself if I was going to group it. If not grouped maybe a multiyear average. Tough issue for quant approaches. Do we have a expected tax by analysts? A complex topic to account for for sure..