VBM logo


Learn more: Articles  |  Books  |  Dictionary  |  Faq  |  Home  |  Leaders  |  Organizations  |  Search

Net Operating Profit After Tax

Earnings after tax payments:

Summary of NOPAT. Abstract




      Net Sales

-    Operating Expenses


      Operating Profit (EBIT)

-    Taxes


      Net Operating Profit After Tax


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.


NOPAT does NOT take into account the idea that a business must cover both the operating costs AND the capital costs.


T I P : Here you can discuss and learn a lot more about calculating NOPAT.

More valuation methodologies


Financial Value


(Residual Income Component)


About us  |  Advertise  |  Privacy  |  Support us  |  Terms of Service

2022 Value Based Management.net - All names by their owners