|
muralidharprasad, india
|
Dealing with Taxes in Calculating NOPAT
NOPAT is worked out on Operating Profit (less) Taxes. But it may be noted that the total tax includes the tax payable on non operating income / profit . Therefore calculating NOPAT by reducing the total tax may be wrong. Please comment.
X
Welcome to the Net Operating Profit After Tax forum. The topic being discussed here is: "Dealing with Taxes in Calculating NOPAT".
Will you join us? It's free.
Log in
| |
|
Satadru, India
|
|
NOPAT
NOPAT = Operating Income x (1-Tax rate)
|
| |
|
Punit, USA
|
|
How to Deal with Taxes in Calculating NOPAT
While calculating NOPAT, we account only account the tax on the operating profit... So first calculate the operating income and then subtract the tax (37% or what so ever).
|
|
|
|
|
More on Net Operating Profit After Tax:
|
|
|
|
Log in