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I am trying to calculate NOPAT for L S STARRETT CO.

The effive tax rate I calculated for 2020 was -0.09%

Operating Income was -5.3 mill.

Using the NOPAT formula Operating Profit * (1 - tax rate) I got -5.8% when I ran the numbers through the formula.

My question is when the effective tax rate is 0% or less do you (In my case) use the -.09% or just input 0% into the formula. Links for financials SEC or Marketbeat

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