View source for Net Operating Profit After Taxes (NOPAT)

== What is Net Operating Profit After Taxes (NOPAT)? ==

'''Net operating profit after taxes (NOPAT)''' is a measure of a company's profitability that looks at its operating income, adjusts for taxes, and excludes non-operating items such as interest expense and extraordinary items.

NOPAT is calculated by taking the company's operating income, which is revenue minus the cost of goods sold and operating expenses, and then adjusting for taxes. The resulting figure represents the net profit generated by the company's core business operations, before taking into account financing and investing activities.

NOPAT is an important measure of a company's profitability, as it helps to isolate the effect of its operating performance on its bottom line. It is often used in conjunction with other financial metrics, such as return on assets (ROA) and return on invested capital (ROIC), to assess the efficiency and effectiveness of a company's operations.

It is important to note that NOPAT is a non-GAAP (generally accepted accounting principles) measure, which means that it is not necessarily calculated in the same way as the net income reported on the company's income statement. As a result, NOPAT should be used with caution and in conjunction with other financial metrics to get a complete picture of a company's financial performance.




== See Also ==
*[[IT Strategy (Information Technology Strategy)]]
*[[IT Governance]]
*[[Enterprise Architecture]]
*[[Chief Information Officer (CIO)]]
*[[IT Sourcing (Information Technology Sourcing)]]
*[[IT Operations (Information Technology Operations)]]
*[[E-Strategy]]






== References ==
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