NET OPERATION PROFIT AFTER TAXES Definition

Bookmark and Share

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).

Learn new Accounting Terms

LAND, in terms of accounting, is the value of real estate less the value of improvements, e.g. buildings.

PRETAX INCOME is a profitability measure that looks at a company's profits before the company has to pay income tax. This measure deducts all expenses from revenue including interest expenses and operating expenses, but it leaves out the payment of tax.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.