Net Operating Profit After Taxes (NOPAT), also known as Unlevered Net Income, is a way to understand a company's core business profitability after tax. It is calculated using the following formula:The operating income value is pre-interest and pre-tax earnings, while the tax rate is the applicable corporate tax rate in the particular jurisdiction.This can tell you how much money a company would still make after paying taxes, if you ignored its interest income and expense, income from side activities, write-downs, and impairments.
Learn Net Operating Profit After Taxes (NOPAT) with interactive examples and practice exercises in our Income Statement module.
This interactive learning module helps you understand Net Operating Profit After Taxes (NOPAT) through hands-on practice and real-world examples.