People make a big deal about talking about the tax rate of companies. Companies are saving millions or spending millions, or what have you. There's a really nice little calculation here. It's called the effective tax rate. The effective tax rate is the tax bill as the ratio of the earnings before tax. And show you where these numbers are. So our tax bill is right here, we call our income tax. So, on our income statement it's well, I'll highlight it for you, right here our income tax expense. So for Dell, the income tax here is $715 million. Now, our pretax earnings, our EBT highlight in a slightly different color is purple here. Is right there, okay? So the ratio of our EBT and our income taxes tells you what our effective tax rate is. So you take your income taxes, 715 and you take your earnings before tax, 3350. And you can then calculate the effective tax rate of this company. So let's do that right now. We've got 715 As a ratio of 3350. You know what I'm going to do? Take my handy-dandy calculator, it's beautiful. It's got MRE's name on it, and I have an effective tax rate of 0.21 34. What does this mean? It means I'm paying 21% on $3.35 billion. And 21% of that is $715 million. Okay, so this is my effective tax rate. You can look at effective tax rates of other companies to identify really whether or not Dell is paying taxes in the same range as other companies. Remember, your net income is only net after you've paid taxes. So, most people don't enjoy paying taxes, and most shareholders would rather you have a higher net income. So if Dell wants to be competitive, they have to understand what their tax rate is. How much they're paying and where they fall relative to the industry, the sector, and other companies that operate in their same battle ground. What I'd like you to do is look at the income statement for your company or another company in your industry. And calculate the effective tax rate using the information on your income statement.