Recent comments in /f/dataisbeautiful

wolf1moon t1_j00n4ix wrote

That makes sense they would capitalize it, but the amortization is still a tiny percentage. There's no way to slice this that isn't very little money spent on r&d compared to the profits. I used to work health care supply chain and r&d was never a major expense. The selling costs including buying employees boats to take doctors out on "as friends" because it didn't count as bribery if you didn't give the doctor the boat directly. Crazy shit

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kirlandwater t1_j00jqs6 wrote

That’s great and all, but that $8.6b in net profit is my biggest concern. Drug makers blame high R&D costs to develop new meds on exorbitant drug costs, but it’s all just going right back to shareholders, whether directly through dividends, retained earnings, or share buybacks.

And that $8.6b in net profit is just the last 3 months. These figures are just Q3 2022. FY2021 they brought in a whopping $21.98b in net profit from $81.3b in revenue. And spending $13.8b in R&D. 59% more in net profit attributed to shareholders than R&D.

source: page 51

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[deleted] t1_j00ipeg wrote

>Where are you getting that percentage

It’s the US corporate tax rate. The 4% figure is based on their reported profits, but this isn’t the same as taxable income

The actual tax paid so far in 2022 for them is around $5 billion. It’s just that their effective tax rate includes deferred taxes in future years, which are very negative

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[deleted] t1_j00ik50 wrote

If you look at their 10-Q, a lot of their in-process R&D this year came from acquisitions, which are capitalized on the balance sheet and them amortized over 15 years

Also, any foreign R&D they have abides by foreign reporting rules, in which development costs are also capitalized

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wolf1moon t1_j00i7dx wrote

Where are you getting that percentage? Compare like to like. They're paying 4% if that data is real, as their effective tax rate. For citizens, the effective tax rate is 14.6%, see source below.

The top 50% of taxpayers paid 97.1% of all federal income taxes in 2018. Among those taxpayers, the average income tax rate was 14.6% and the average tax paid was $20,663. The OECD reported that the U.S. "tax wedge" for the average single worker was 28.4% in 2021.

https://www.thebalancemoney.com/what-the-average-american-pays-in-taxes-4768594

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