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Net Operating Profit After Tax

Earnings after tax payments:

Summary of NOPAT. Abstract



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

NOPAT is necessary for calculating Economic Value Added.

NOPAT can be calculated at divisional (Strategic Business Unit) level.


Financial Value


(Residual Income Component)



      Net Sales

-    Operating Expenses


      Operating Profit (EBIT)

-    Taxes


      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.


👀TIP: On this website you can find much more about calculating NOPAT!

More valuation methodologies

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