Net operating profit after tax (NOPAT) is equal to net income less interest expense incurred during the year.

Name: Net operating profit after tax (NOPAT) is equal to net income less interest expense incurred during the year.
Brand: Quizplus
Rating: 4.9 (40 reviews)

Question

Quizplus · Accepted Answer

NOPAT is calculated as operating income (or operating profit) multiplied by (1 - tax rate), not by subtracting interest expense from net income. NOPAT focuses on the profitability of a company's core operations without the effects of financing and tax expenses.

Net Operating Profit After Tax (NOPAT) Is Equal to Net