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).

Learn new Accounting Terms

ICA is International Congress of Accountants.

Dr is an ancient Italian abbreviation for the Italian word 'debare'; meaning 'debit' (not to be confused with the acronym DR with both letters in uppercase).

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