Net operating profit after tax

From ACT Wiki
Jump to navigationJump to search
The printable version is no longer supported and may have rendering errors. Please update your browser bookmarks and please use the default browser print function instead.

(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