Tax Credit Carryforward Valuation Allowance
Morgan Stanley Tax Credit Carryforward Valuation Allowance increased by 7.0% to $229M in Q4 2025 compared to the prior quarter. Over 3 years (FY 2022 to FY 2025), Tax Credit Carryforward Valuation Allowance shows an upward trend with a 3.8% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.
Analysis
How to read this metric
An increase in the allowance suggests management is less confident in the company's ability to utilize these tax assets, which is a negative signal for future tax savings.
Detailed definition
A contra-asset account established against deferred tax assets related to tax credit carryforwards when it is more likel...
Peer comparison
Standard accounting practice; peers with strong, consistent earnings growth typically maintain lower valuation allowances.
tax_credit_carryforward_valuation_allowanceHistorical Data
| Q4 '22 | Q4 '23 | Q4 '24 | Q4 '25 | |
|---|---|---|---|---|
| Value | $205M | $211M | $214M | $229M |
| QoQ Change | — | +2.9% | +1.4% | +7.0% |
| YoY Change | — | +2.9% | +1.4% | +7.0% |
Tax Credit Carryforward Valuation Allowance at Other Companies
Frequently Asked Questions
- What is Morgan Stanley's tax credit carryforward valuation allowance?
- Morgan Stanley (MS) reported tax credit carryforward valuation allowance of $229M in Q4 2025.
- What is the long-term trend for Morgan Stanley's tax credit carryforward valuation allowance?
- Over 3 years (2022 to 2025), Morgan Stanley's tax credit carryforward valuation allowance has grown at a 3.8% compound annual growth rate (CAGR), from $205M to $229M.
- What does tax credit carryforward valuation allowance mean?
- A reduction in the value of tax credits because the company may not earn enough profit to use them before they expire.