valuation allowance when calculating ratios

[h21]

based on the questions I saw on EOC, they always add the inventory write down back to the original value when calculating ratios, why is that, is this one of the case when you just wanna see the analyst view, see how actual operation status is showing?

 

[S2000magician]

Are you talking about income statement ratios? If so, it makes sense: the inventory write-down is an unusual, presumably one-time event, so you don’t want your ratios distorted by it.

 

[h21]

ye, like inventory turn over ratios, thanks, i guess you always have to practice to figure those tricky stuff out