Net Operating Profit After Tax

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Net Operating Profit After Tax

A company's operating profit after subtracting its tax liability. It is calculated as follows:

NOPAT = Operating Profit * (1 - tax rate)

Because operating profit does not deduct interest expenses, NOPAT shows what a company's net profit would have been if it were debt free. As such, it may provide a more accurate description of a company's efficiency of operations for highly leveraged companies.
References in periodicals archive ?
[H.sub.1]: Net Operating Profit after Tax (NOPAT) is superior to Economic Value Added (EVA) in explaining the change in Market Value Added (MVA).
The NOPAT estimates in the residual period should imply sustainable values of RONIC and profit margins, while the forecast revenue should equal the average over the company's business cycle.
Net operating profit after taxes (NOPAT) is determined as earnings before interest and taxes (EBIT) less taxes.
The increase in sales revenue and profitability, coupled with the lowering of tax payments and cost of goods sold due to ERM shall impact the NOPAT component of the enterprise's EVA in a positive manner.
His results showed that EVA had a better relationship with stock return than traditional tools (EPS, DPS, and NOPAT) for the period of 1997-2002, for the main board company listed in Bursa Malaysia.
Ex: Lucro Antes do Imposto de Renda e dos Juros (EBIT); EBITDA, que e o EBIT mais depreciacoes e amortizacoes; Lucro Operacional Liquido Apos o Imposto de Renda (NOPAT); Retorno sobre o Investimento (ROI); Retornos sobre os Ativos (ROA); Retornos sobre o Patrimonio Liquido (ROE) e Retorno sobre os Ativos Liquidos (RONA).
* Net Operating Profit After Taxes (NOPAT), que declara la utilidad operacional despues de impuestos.
He has analysed the performance of the company with the help of EVA MVA Net Operating Profit After Tax (NOPAT) Profit After Tax (PAT) Market capitalization and Earning Per Share (EPS).
The key principle of EVA is to subtract from the Net Operating Profits after Tax (NOPAT) all debt and equity charge, thus providing shareholders with a threshold for a minimum level of operating profits.
Los conceptos de EVA, net operating profit after tax (NOPAT) (4), weighted average cost of capital (WACC) (5), free cash flow (6), value drivers (7) y otros, a pesar de estar intimamente relacionados con los resultados de las organizaciones, colisionan frecuentemente con los procesos de la contabilidad convencional (Cachanosky, 2000) y pasan a formar parte del lenguaje de los expertos financieros, lo que eventualmente genera temor, confusion e incluso rechazo por parte de los responsables de la gestion.