Net Operating Profit After Taxes
Net Operating Profit After Taxes Formula |
\( NOPAT \;=\; OP \cdot \left( 1 - ETR \right) \) |
Symbol |
\( NOPAT \) = net operating profit after taxes |
\( ETR \) = effective tax rate |
\( OP \) = operating profit |
Net operating profit after taxes, abbreviated as NOPAT, is how much profit a company generates by looking at its operating income minus taxes.