Definition for : NOPAT
GLOSSARY LETTER
NOPAT is net Operating profit after tax (EBIT after tax). When Return on Capital employed is calculated on after tax basis, NOPAT is divided by Capital employed. The tax rate is a theoretical tax rate, calculated on the Base of the company's normalised tax rate.
(See Chapter 13 Return on capital employed and return on equity of the Vernimmen)
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