American *VS* Foreign Companies' Tax Rates
Although I am not, by any stretch of the imagination, a tax expert, I'm good at long-division using a spreadsheet. Also, I am quite able to discern the income statements of any public company using sites like finance.google.com.
I analyzed the income statements of a random assortment of foreign companies. These companies are based all over the world, and they have been somewhat weighted to properly reflect that particular's country in the world economy. The sample size of foreign countries that I used was N".
From my previous report, I determined that the 500 biggest American companies pay on the average: 2.4% of their revenues as taxes, and
32.4% of their pretax income as taxes. The foreign companies, on the other hand, pay 14.3% and 32.9%, respectively.
Based on this, I would think that, basically, the US and foreign corporations pay about the same rate of their pretax income as taxes.
However, the foreign corporations have much higher pretax income, when compared to their American counterpart, and:
- They seem to have much less costs and higher profit margins, in general.
- The foreign companies must incur less depreciation costs, less COGS/SG&A (which is employee compensation), and less interest costs than when compared to their American counterparts. American corporations pay more to their employees, and this cost decreases their income (both pretax and post-tax), but this doesn't impact the ratio of PreTaxIncome/PostTaxIncome.
I have the data from the 22 companies that I analyzed down below.
Please give me feedback on my analysis.
Annualized Revenue Total Pretax Income Net Income
48948 5640 4348
86604 -5920 -9860
59473 23483 15390
26289 24372 17178
40187 5184 3888
87735 19299 13138
35478 9001 6660
59473 23483 15390
105216 14888 10368
355782 50576 31331
118912 7694 5666
356959 129238 87062
88083 20028 10011
835037 204381 145625
56441 10684 8906
22716 7452 5214
38947 7487 6518
136824 25335 13181
32242 15233 11825
108897 6543 4120
291438 31611 20843
8090 2093 1521
2991681.24 635692.22 426802.79 % Taxes from PreTax Income .32860 % Taxes from Total Revenue .14266