Dealing with Taxes in Calculating NOPAT

Net Operating Profit After Tax
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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.

  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).

 

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