Net operating profit after tax

From ACT Wiki
Revision as of 15:40, 21 August 2013 by imported>Doug Williamson (Spacing 21/8/13)
Jump to navigationJump to search

(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.


See also