Deferred Tax and Missing Data

Introduction

The Deferred Tax and Missing Data analysis tool allows you to explore the relatively large impact deferred taxes can have on the Sweet Sixteen financial ratios. The tool is pre-populated with the market valuation of assets for the EWS Farms case farm. If desired, the tool allows the user to enter their own asset values to calculate Sweet Sixteen financial ratios for their own agricultural operation.

The Deferred Tax and Missing Data analysis tool is equipped with sliders that allow the user to set the marginal tax rate for ordinary income and the capital gains tax rate for assets typically classified as non-current assets. A two-column format is used to show the impact deferred taxes can have on an evaluation of your net value assuming all assets are liquidated. The tool is designed to illustrate how missing data, in this case deferred taxes, can have a significant impact on the results of a financial health check up.