Net operating profit after tax: Difference between revisions

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Revision as of 14:20, 23 October 2012

(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