EXPENSE Definition

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EXPENSE is the amount of assets or services used during a period.

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EBIAT is Earnings Before Interest After Taxes. It  is a measure of a company's ability to produce income on its operations in a given year. See NOPAT.

NET OPERATION PROFIT AFTER TAXES (NOPAT) is a profitability measure that omits the cost of debt financing (i.e. it omits interest payments, along with their associated tax break). NOPAT is primarily used in the calculation of EVA. It is calculated: NOPAT = operating income x (1 - Tax Rate).

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