The effective income tax rate reflects the proportion of the company's actual income tax paid in its total profit based on its accounting profit. The higher the indicator, the heavier the tax burden the company bears, which may mean that the company enjoys fewer tax incentives or has lower tax management efficiency. Conversely, a lower effective income tax rate may reflect that the company has taken advantage of tax incentives, conducted effective tax planning, or has certain deferred income tax assets, but it may also indicate potential tax risks. Therefore, when analyzing this indicator, it is necessary to conduct a comprehensive assessment based on industry characteristics, tax policies, and the company's own operating conditions, and pay attention to its changing trends and comparisons with other companies in the same industry.

It is worth noting that there may be differences between the effective income tax rate and the statutory income tax rate, and the difference is usually caused by permanent differences (such as tax-free income) and temporary differences (such as accelerated depreciation). Therefore, the effective income tax rate can better reflect the company's true tax burden and profitability.