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NOPAT

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Net Operating Profit After Tax

Earnings after tax payments:

Summary of NOPAT. Abstract

 

Description


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.


Category


Financial Value

Traditional

(Residual Income Component)


Formula

 

      Net Sales

-    Operating Expenses

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

      Operating Profit (EBIT)

-    Taxes

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      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!


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