Net operating profit after tax (NOPAT) includes operating revenues less expenses such as:
A) Cost of goods sold (COGS)
B) Taxes on operating income
C) Selling, general and administrative expenses (SG&A)
D) After-tax earnings from investments and interest expenses
E) All of the above
F) A, B and C only

Question

Quizplus · Accepted Answer

NOPAT is calculated by taking a company's operating income and subtracting taxes associated with the operating income. It includes operating revenues less operating expenses such as Cost of Goods Sold (COGS) and Selling, General, and Administrative expenses (SG&A), but it excludes after-tax earnings from investments and interest expenses, as these are not considered operating income.

Net Operating Profit After Tax (NOPAT) Includes Operating Revenues Less