After-Tax Return

After-Tax Return

The return on an investment after any applicable taxes on it are paid. For example, if one sells a house for $100,000 but owes $25,000 in taxes from the sale, the after-tax return on the house is only $75,000. The amount of the after-tax return may vary on the same investment depending on whether one owes income tax or capital gains tax. It should not be confused with the after-tax value, which is similar but is not contingent on the sale of an asset or the closing of an investment.
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In a municipal term trust, this fixed termination date allows investors to achieve a high level of after-tax return over the final year of the funds existence.
Through the continued execution of its strategy, ITW expects to deliver the following performance goals by the end of 2018 and beyond: Organic growth at 200 basis points or more above market; 25+ percent operating margin (previously 23+ percent); 20+ percent after-tax Return on Invested Capital; Free cash flow of 100+ percent of net income; and
While unnerving, the volatility highlighted an important opportunity for smart investors: to employ strategies aimed at minimizing their tax bills, thereby improving after-tax return potential.
Gold's 12% annual pretax return over the past decade declines to less than 10% on an after-tax basis, but if the gold investment had been classified as a capital asset and taxed at a 15% capital gains rate, the after-tax return would have been nearly 11 %.
The bank would also review pay practices to boost profitability, as well as setting a roadmap to increase its after-tax return on equity to at least 12 percent by 2015, from 8.
30 November 2011 - Norwegian filling stations company Statoil Fuel & Retail ASA (OSL:SFR) said it targets an after-tax return on capital employed (ROCE) of above 13% in the medium term, at its investor day held on Tuesday.
The findings clearly illustrate what Lipper articulated in their report--that it's not a fund's total return that matters but the after-tax return that you pocket.
Table 1 presents the summary statistics for our sample, including: total return, after-tax return, net assets, turnover, and expense ratio (3).
For example, a 40% combined federal and state bracket reduces the after-tax return of a 10% investment yield to 6%.
During a year when ABF operated through a challenging freight environment, Arkansas Best maintained its strong financial position and generated a full year 2007 After-Tax Return on Capital Employed of 9.
For example, if a portfolio generates net realized gains, then the portfolio's after-tax return will be less than the pre-tax return because the investor will have to pay taxes on the realized gains.
As this option expires, careful attention to the after-tax return on investments is warranted.