Net Operating Profit After Taxes

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Net operating profit after taxes, abbreviated as NOPAT, is how much profit a company generates by looking at its operating income minus taxes.

 

net operating profit after taxes Formula

\(\large{ NOPAT =  OP \; \left( 1 - ETR \right) }\)  

Where:

\(\large{ NOPAT }\) = net operating profit after taxes

\(\large{ ETR }\) = effective tax rate

\(\large{ OP }\) = operating profit

 

Tags: Equations for Manufacturing