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How does Toolkit calculate PTP--what is the formula for calculating PTP?
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Hello,
There are a few ways to calculate this, depending on what figures are available. The data we get from Morningstar has the Net Profit and the Tax rate. You can work backwards from those to arrive at the Pre-Tax Profit.
For example, GOOG right now is showing 29,929.1 for PTP at the end of FY 2017
Check the Data window, and you'll see the Annual data for 2017 shows Net Profit of 12,664.5 and Tax Rate of 57.7
Divide the Net amount by the opposite of the tax rate: 12,664.5 [Divided By] .423 = 29,929.1
-Sean
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 1 user thanked sean for this useful post.
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What is the opposite of the tax rate"?
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That would be (1- tax rate). In Sean's example 1-.577 = .423.
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