This tool performs arithmetic computations on data you provide. It does not verify comparability, filter the data set, or assess the appropriateness of the PLI for your transaction. Results may be unreliable if the underlying inputs or methodology are incorrect.
Disclaimer: This tool is provided by ABAdvisory Group LLP as a free computational utility for informational and educational purposes only. It does not constitute tax, legal, transfer pricing, or any other professional advice. ABAdvisory Group LLP makes no warranty as to the accuracy, completeness, or fitness of the results for any particular purpose, and shall not be responsible or liable for any loss, claim, penalty, or damage arising from reliance on the output of this tool. Users are strongly advised to consult qualified transfer pricing professionals before relying on these computations for tax filings, audit, litigation, or any other purpose. By using this tool, you agree to these terms.
Adjustment formula: (Comparable WC/Sales − Tested Party WC/Sales) × Interest rate, applied as a reduction to comparable's reported margin.
Enter the white-row line items below. Blue-shaded rows (Total Revenue, Net Operating Revenue, Net Operating Costs) and gold-shaded rows (Operating Profit, PLI) are auto-computed.
Methodology note: Per Rule 10B(4), the tested party's PLI is taken for the analysis year (Year 3 — most recent) only and is compared against the comparables' 3-year weighted average. If Working Capital adjustment is enabled, the WC/Sales ratio is still computed on a 3-year weighted basis for both the tested party and the comparables, for stability.
Add 1–20 comparable companies. Range methodology auto-detects based on count: 6 or more → 35th–65th percentile range; fewer than 6 → arithmetic mean with tolerance band.