Net operating profit after tax: Difference between revisions
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(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. | (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: | Often estimated as: | ||
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T = corporation tax rate. | T = corporation tax rate. | ||
== See also == | == See also == | ||
* [[Profit before interest and tax]] | * [[Profit before interest and tax]] | ||
Revision as of 15:40, 21 August 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.
