NOPAT
Net Operating Profit After Tax
Profitability RatiosOperating profit (EBIT) with tax removed, before any financing effects. It is the profit the business generates for all capital providers.
Formula
NOPAT = EBIT x (1 - Tax Rate)
Why it matters
NOPAT separates business performance from financing choices, which is why DCF models and ROIC calculations start from it rather than from net profit.
Indian example
Related terms
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