NOPAT

Definition

Net Operating Profit After Tax. An estimate of what a company would earn if it didn't have any debt, equal to operating income times (1 minus the tax rate). For companies which use leverage, NOPAT is an alternative measure for measuring operating efficiency. NOPAT is frequently used for calculating Economic Value Added (EVA).

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Popular 'Accounting' Terms

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NOPAT is ...

... part of the Accounting, Earnings and Stocks subjects.

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