Jump to main content or area navigation.

Contact Us

Water: Economics

Policy & Guidance: Worksheet I

Interim Economic Guidance for Water Quality Standards

Calculation of Profit Rates

With and Without Pollution Control Project Costs

A. Profit Rate Without Project Costs


Where: PRT = Profit Rate Before Taxes

EBT = Earnings Before Taxes

R = Reveneus

Three Most Recently Completed Fiscal Years

19 ___
19 ___

EBT [Worksheet H, (4)]
R [Worksheet H, (1)]

PRT = Calculate: [(1)/(2)]

Considerations: How have profit rates changed over the three years?

Is the most recent year typical of the three years? Yes No (If not, you might want to use an earlier year or years for the analysis)

How do these profit rates compare with the profit rates for this line of business"? Please discuss below.

B. Profit Rate With Pollution Control Costs


Where: PRPR =

Profit Rate With Pollution Control Costs

EWPR = Before-Tax Earnings With Pollution Control Costs

R =


The Most Recently Completed Fiscal Year


EWPR [Worksheet H, (7)] $________  (4)
R [Worksheet H, (1)] $________  (5)

PRPR [Calculate: (4)/(5)] ________ (6)


What is the percentage change in the profit rate due to pollution control costs ? Calculate as follows: (PRPR - PR)/PR x 100

How does the profit rate with pollution control compare to the profit rate of this line of business?

Jump to main content.