Net Operating Profit After Tax
(NOPAT)

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Net Operating Profit After Tax. Explanation of NOPAT.

What is Net Operating Profit After Tax? Description

NOPAT is the Operating Profit (EBIT) minus Taxes. Another word for Net Operating Profit After Tax is Profit after Tax.

Calculation of NOPAT. Formula

      Net Sales

-     Operating Expenses

----------------------------------------------

      Operating Profit (EBIT)

-     Taxes

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      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.

Net Operating Profit After Tax Forum   What is Operating Expenses? How is operating expenses calculated?...           Is Depreciation Included in Nopat? Nopat = EBIT - taxes... Is depreciation also ...           Dealing with Taxes in Calculating NOPAT NOPAT is worked out on Operating Profit (less) Tax...         Begin a new topic

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Compare with:  DuPont Model  |  Economic Value Added  |  EBIT

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