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Net operating profit after taxes

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Net Operating Profit After Tax or NOPAT is a company's operating profit for all investors, including shareholders and debt holders.[1] It is defined as follows:

NOPAT = Operating Profit x (1 - Tax Rate)

This assumes that the company had no debt.[2]

NOPAT is frequently used in EVA calculations.[2][1]

References

  1. ^ a b Moneyterms.co.uk. NOPAT
  2. ^ a b investopedia.com. NOPAT
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