Net operating profit after taxes is referred to as
A)segment net income.
B)NOPAT.
C)net income.
D)invested capital.

Question

Quizplus · Accepted Answer

Net operating profit after taxes (NOPAT) is the profitability measure that indicates the amount of profit a company earns from its operations after deducting taxes, but before deducting interest expenses and non-operating items. It is a financial metric that helps investors and analysts understand the company's earnings potential from its main business activities on an apples-to-apples basis, regardless of whether the company uses debt or equity financing. Therefore, choice B is the correct answer.

Net Operating Profit After Taxes Is Referred to as