NOPLAT

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NOPLAT = Net Operating Profit Less Adjusted Taxes.

Used in preference to Net Income as it normalises the effects of capital structure (debt vs. equity).

Though an analyst should make thorough adjustments to account for amortization, intertemporal tax differences, taxes on nonoperating income, and other adjustments, sometimes the following simple back-of-the-envelope formula is employed to show de-levered profits by removing the effects of a debt tax shield:

Operating earnings before interest = After-tax operating profit + (Interest paid * (1 - tax rate))