NOPLAT

NOPLAT

Investopedia definition

NOPLAT = Net Operating Profit Less Adjusted Taxes. It means Total operating profits for a firm with adjustments made for taxes. It represents the profits generated from a company's core operations after subtracting the income taxes related to the core operations. NOPLAT is often used as an input in creating discounted cash flow valuation models.

Used in preference to Net Income as it removes the effects of capital structure (debt vs. equity). The Operating Profit is prior to interest and taxes being subtracted, which makes NOPLAT equal NOPAT.

NOPLAT minus the monetary cost of all capital (both equity and debt) equals EVA.

Though an analyst should make thorough adjustments to account for amortization, intertemporal tax differences, taxes on nonoperating income, and other adjustments, sometimes the following simple back-of-the-envelope formula is employed to show de-levered profits by removing the effects of a debt tax shield:

Operating earnings = After-tax operating profit + (Interest paid * (1 - tax rate))



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Look at other dictionaries:

  • Net Operating Profit Less Adjusted Taxes - NOPLAT — A financial metric that calculates a firm s operating profits after adjusting for taxes. By using operating income, or income before taking interest payments into account, NOPLAT is a better indicator of operating efficiency than net income, for… …   Investment dictionary

  • Net Operating Profit After Taxes — Der Net Operating Profit After Taxes (NOPAT) oder deutsch Geschäftsergebnis nach Steuern bezeichnet den Nachsteuergewinn, folglich den operativen Gewinn nach Steuern. Aus Sicht aller Kapitalgeber (also Fremd und Eigenkapitalgeber) ist der NOPAT… …   Deutsch Wikipedia

  • Net Operating Profit Less Adjusted Taxes — Der Net Operating Profit Less Adjusted Taxes (NOPLAT; zu deutsch Geschäftsergebnis abzüglich angepasster Steuern; auch als Earnings Before Interest, EBI bezeichnet) ist eine betriebswirtschaftliche Kennzahl, die den um die genau gezahlten Steuern …   Deutsch Wikipedia

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  • Betriebswirtschaftliche Kennzahl — Eine betriebswirtschaftliche Kennzahl wird innerhalb der Betriebswirtschaft zur Beurteilung von Unternehmen eingesetzt. Sie dient als Basis für Entscheidungen (Problemerkennung, Ermittlung von betrieblichen Stark und Schwachstellen,… …   Deutsch Wikipedia

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