Operating Model

In Step 2, we projected the tax rate as 40%, a round number approximation of the MRY tax rate. We still like our round, 40% all-in tax rate, but will bifurcate...

Net operating losses ("NOL") are generated when taxable income is negative, and may be used to offset positive taxable income, thereby reducing taxes payable....

In financial modeling, we do not often consider the United States' Alternative Minimum Tax ("AMT"). We do so here only to expose you to the maximum complexity...

We compute the deferred tax expense or benefit in each period as the difference between the cash taxes payable to tax authorities and the tax expense computed...

Fully diluted shares outstanding ("FDSO") is computed as basic common shares outstanding plus any share equivalents resulting from the hypothetical exercise...

Now that we have projected shares outstanding in Step 17, we can compute common dividends. We begin by projecting common dividends per share equal to...

Analysts and investors sometimes focus more on cash earnings than GAAP/IFRS earnings. To get a sense of the extent to which investors focus on cash earnings...

Debt is an important part of the capital structure for many companies, so we add a few common metrics that highlight the company's leverage and its ability...