Net operating profit after taxes

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Net operating profit after taxes (also known by its acronym, NOPAT) is the amount of profit a company would generate if it had no debt and no financial assets.


Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

NOPAT (net operating profit after taxes). The amount of profit a company would generate if it had no debt and no financial assets.

According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),

Net operating profit after taxes (NOPAT). The profit a company would generate if it had no debt and held only operating assets.

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