NET OPERATION PROFIT AFTER TAXES Definition

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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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LIBID is the London Interbank Bid Rate, the rate that a bank is willing to pay for funds in the international interbank market.

INTEREST INCOME - NON-OPERATING is interest income generated from non-operating investment securities such as certificates of deposit or bonds for non-financial service companies.

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