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What is NOPAT (Net Operating Profit after Taxes)
Net Operating Profit after Taxes is a term that refers to operating profit generated by the main (operating) activity of the business after taxation.

Net Operating Profit after Taxes, usually abbreviated as NOPAT. It is a term that refers to operating profit generated by the main (operating) activity of the business after taxation.

Calculation: NOPAT = operating profit × (1-t),

where: t…. Income tax rate.

Use of NOPAT in practice: in business it can be used by CFO in financial analysis to analyze ratios.

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Last update: 07.11.2016

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