Available modeling methods
| Method / input | Behavior |
|---|---|
| Rate on pre-tax income | A rate between 0% and 100% applies to positive taxable income. |
| Tax amount | Enter an explicit signed tax amount; a negative amount is a tax benefit. |
| Loss carryforward | Enable Advanced loss carryforward and enter its opening balance. |
Losses and manual years
With the loss-carryforward option active, forecast losses increase the carryforward and available losses offset positive taxable income in rate-driven years. Historical years do not run this forecast loss schedule. A manual-only tax year freezes the loss balance rather than silently consuming it. Switching between amount and rate preserves each method’s assumptions.
Separate statement and valuation tax
Statement tax affects net income, cash flow and retained earnings. DCF normally calculates unlevered operating tax from EBIT and the model tax rate; choosing model tax deliberately includes financing effects. This is a financial planning mechanism, not a jurisdiction-specific tax return or deferred-tax model.
Check a loss-to-profit transition
Enter an opening loss balance, forecast a loss year and a later profitable year. Inspect loss usage, tax expense and cash together. Compare a manual tax amount in a separate scenario rather than adding it on top of the rate result unintentionally.
Documents the current implemented behavior. Example assumptions are not market data.