Net Operating Profit After Tax
(NOPAT)

Knowledge Center

• About
• Home
• Dictionary
• Encyclopedia
• Question?
• Views

• Register
• Log in
• Help

• Change & Organization
• Communication & Skills
• Decision-making & Valuation
• Ethics & Responsibility
• Finance & Investing
• HRM
• Knowledge & Intangibles
• Leadership
• Marketing
• Program & Project
• Strategy
• Supply Chain & Quality

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

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

      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.

Special Interest Group - Net Operating Profit After Tax Special Interest Group (4 members)

Forum - Net Operating Profit After Tax   In the forum section you will find recent discussions within this knowledge area.   Dealing with Taxes in Calculating NOPAT (2 reactions) NOPAT is worked out on Operating Profit (less) Taxes. But it...           Is Depreciation Included in Nopat? Nopat = EBIT - taxes... Is depreciation also excluded f...           What is Operating Expenses? (1 reactions) How is operating expenses calculated?...

Best Practices - Net Operating Profit After Tax In the best practices section you will find the best forum discussions within this knowledge area.

Expert Tips - Net Operating Profit After Tax In the expert tips section you will find advices from experts within this knowledge area.

Resources - Net Operating Profit After Tax In the Resources section you will find powerpoint presentations, micro-learning videos, articles, news items, etc. within this knowledge area.   News about Nopat Calculation         News about Nopat Operating         Videos about Nopat Calculation         Videos about Nopat Operating         Presentations about Nopat Calculation         Presentations about Nopat Operating         Books about Nopat Calculation         Books about Nopat Operating         More about Nopat Calculation         More about Nopat Operating

Compare with:  DuPont Model  |  Economic Value Added  |  EBIT

Return to Management Hub: Finance & Investing

More Management Methods, Models and Theory