Power Income Tax Expense vs Gross Profit Analysis

The correlation between Power Metal's Income Tax Expense and Gross Profit is -0.56. Overlapping area represents the amount of variation of Income Tax Expense that can explain the historical movement of Gross Profit in the same time period over historical financial statements of Power Metal Resources, assuming nothing else is changed. The correlation between historical values of Power Metal's Income Tax Expense and Gross Profit 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 Tax Expense of Power Metal Resources are associated (or correlated) with its Gross Profit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Gross Profit has no effect on the direction of Income Tax Expense i.e., Power Metal's Income Tax Expense and Gross Profit go up and down completely randomly.