Tax Dodge or Genius Move? Elite Pharmaceuticals' Fiscal Gymnastics Leave Competitors puzzled

Elite Pharmaceuticals (ELTP) has reported a remarkably low effective tax rate of -3.78% for the past twelve months, much lower than the levels for many of its peers in the industry, which are above 20%. Most likely, this negative tax rate suggests that the company benefits from tax credits or carryforward losses. Elite has an advantageous tax situation, making it more profitable and cash flow-positive. However, it should be noted that, despite some revenue growth relative to other pharmaceutical peers, each quarter has disappointed in achieving enough net income growth. In that way, the low tax rate positions Elite as a very competitive player in terms of profitability and reinvestment potential in the pharmaceutical sector. 

 

Source: StockInvest.US