NOPAT
From Wikipedia, the free encyclopedia
Net Operating Profit After Tax or NOPAT is a company's after-tax operating profit for all investors, including shareholders and debt holders.[1] It is defined as follows[2]:
- NOPAT = Operating Profit x (1 - Tax Rate)
This assumes that the company had no debt.[2] An alternative formula is as follows[3]
- NOPAT = Net Profit After Tax + Interest Expenses
NOPAT is frequently used in EVA calculations.[2][1]
[edit] References
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