NDC and Net operating profit after tax: Difference between pages
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imported>Doug Williamson (Create page. Source: ACT blog https://www.treasurers.org/hub/blog/esg-update) |
imported>Doug Williamson m (Category added 8/10/13) |
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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. | |||
Often estimated as: | |||
NOPAT = PBIT x (1-T) | |||
where: | |||
PBIT = profit before interest and tax; and | |||
T = corporation tax rate. | |||
== | == See also == | ||
[ | * [[Profit before interest and tax]] | ||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
Revision as of 08:19, 8 October 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.
