Question
How does debt-to-capital differ from debt-to-equity?
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Answer
Debt-to-capital includes equity in the denominator; debt-to-equity does not.
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Question
What causes deferred tax liabilities to arise?
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Answer
Temporary differences between accounting income and taxable income.
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Question
Why are pension obligations included among non-current liabilities?
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Answer
They represent longer-term obligations from defined benefit plans.
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Question
Why can the cash tax rate be below the effective tax rate?
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Answer
The company is using deferred tax liabilities to defer cash taxes.
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