Net operating profit after tax: Difference between revisions
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Often estimated as: | Often estimated as: | ||
NOPAT = PBIT x (1-T) | |||
where: | where: | ||
PBIT = profit before interest and tax; and | |||
T = corporation tax rate. | |||
== See also == | == See also == | ||
* [[Profit before interest and tax]] | * [[Profit before interest and tax]] | ||
Revision as of 14:37, 28 May 2013
(NOPAT). A measure of business profitability which is independent of the chosen capital structure, but which does take account of the taxation of the operating profits.
Often estimated as:
NOPAT = PBIT x (1-T)
where:
PBIT = profit before interest and tax; and
T = corporation tax rate.
