$75k

6.06

vs previous period

# Net Operating Profit After Tax (NOPAT)

Date created: Jul 12, 2021 • Last updated: Feb 2, 2022

## What is Net Operating Profit After Tax?

Net Operating Profit After Tax (NOPAT) is a financial performance metric that calculates profit gained through core operations after taxes. This metric is used to measure operating efficiency without the impact of debt, because the calculation does not take tax benefits from debt into consideration. In other words, if a company has no debt, their NOPAT and net income after tax would be identical.

### Net Operating Profit After Tax Formula

### How to calculate Net Operating Profit After Tax

If operating income is $100,000 and the tax rate is 30%, then NOPAT is $100,000 * (1 - 30%) or $100,000 * .7, which is $70,000.

### Start tracking your **Net Operating Profit After Tax** data

Use **Klipfolio PowerMetrics**, our free analytics tool, to monitor your data.

### How to visualize Net Operating Profit After Tax?

Typically, you would view your NOPAT on the balance sheet. If you decide to track this number on a dashboard, you should take a similar approach and display your NOPAT as a dollar amount in either a table or a summary chart. Take a look at the example:

### Net Operating Profit After Tax visualization example

#### Summary Chart

Net Operating Profit After Tax

$75.35k

6.09

vs previous period

#### Summary Chart

Here's an example of how to visualize your current Net Operating Profit After Tax data in comparison to a previous time period or date range.## More about Net Operating Profit After Tax

NOPAT is a useful metric to determine operating efficiency of core business operations without the impact of debt. This is useful when trying to calculate free cash flow to the firm, mainly used to consider mergers or acquisitions. By looking at earnings as though capital is unleveraged, you obtain a pure measure of operating efficiency.