Net operating profit after tax and Short term: Difference between pages

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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.
(ST).


Often estimated as:
1.
  NOPAT = PBIT x (1-T)
 
In financial markets 'short term' usually means remaining maturities of up to and including one year.
 
There are some minor exceptions. For example in bond markets 'short term' can refer to original maturities of less than two years.
 
 
2. ''Financial reporting''.
 
For financial reporting purposes, short term borrowings and other liabilities are ones payable within a year, or the next financial reporting period, if shorter.


where:
PBIT = profit before interest and tax; and
T = corporation tax rate.


== See also ==
== See also ==
* [[Profit before interest and tax]]
* [[Balance sheet]]
* [[Bond]]
* [[Duration]]
* [[Life]]
* [[Longer term]]
* [[Maturity]]
* [[Quoted rate]]
* [[Short]]
* [[Short dates]]
* [[Short-term investments]]
* [[Short-term notes payable]]
* [[Short termism]]
* [[Term]]


[[Category:Planning_and_projects]]
[[Category:The_business_context]]

Latest revision as of 17:02, 7 July 2022

(ST).

1.

In financial markets 'short term' usually means remaining maturities of up to and including one year.

There are some minor exceptions. For example in bond markets 'short term' can refer to original maturities of less than two years.


2. Financial reporting.

For financial reporting purposes, short term borrowings and other liabilities are ones payable within a year, or the next financial reporting period, if shorter.


See also