Futura Income Before Tax vs Income Tax Expense Analysis

The correlation between Futura Medical's Income Before Tax and Income Tax Expense is 0.85. Overlapping area represents the amount of variation of Income Before Tax that can explain the historical movement of Income Tax Expense in the same time period over historical financial statements of Futura Medical, assuming nothing else is changed. The correlation between historical values of Futura Medical's Income Before Tax and Income Tax Expense is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Income Before Tax of Futura Medical are associated (or correlated) with its Income Tax Expense. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Income Tax Expense has no effect on the direction of Income Before Tax i.e., Futura Medical's Income Before Tax and Income Tax Expense go up and down completely randomly.