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Net Operating Profit After Tax
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What is Net Operating Profit After Tax? DescriptionNOPAT is the Operating Profit (EBIT) minus Taxes. Another word for Net Operating Profit After Tax is Profit after Tax. Calculation of NOPAT. FormulaNet Sales - Operating Expenses ---------------------------------------------- Operating Profit (EBIT) - Taxes ---------------------------------------------- Net Operating Profit After Tax (NOPAT)NOPAT is necessary for calculating Economic Value Added. NOPAT can be calculated at divisional (Strategic Business Unit) level. Net Operating Profit After Tax (NOPAT) does NOT take into account the idea that a business must cover both the operating costs AND the capital costs.
Compare with: DuPont Model | Economic Value Added | EBIT Return to Management Hub: Finance & Investing |
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