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What is 'Net Operating Profit After Tax  NOPAT'
Net operating profit after tax (NOPAT) is a company's potential cash earnings if its capitalization were unleveraged (that is, if it had no debt). NOPAT is frequently used in economic value added (EVA) calculations.
Calculated as:
NOPAT = Operating Income x (1  Tax Rate)
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BREAKING DOWN 'Net Operating Profit After Tax  NOPAT'
NOPAT is a more accurate look at operating efficiency for leveraged companies. It does not include the tax savings many companies get because they have existing debt.
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How can I use Net Operating Profit After Tax (NOPAT) to compare companies and make ...
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How do analysts and investors interpret Economic Value Added?
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