I have seen a number of threads on this topic but i am still confused. I have looked online and most places define NOPLAT as EBIT(1-T). This seems to agree with how CFAI vol 3 page 270 defines it except here change in deferred taxes is added back. Then in CFAI vol 4 page 272 NOPAT is defined as operating profit after taxes. So it seemed like the only dfference is deferred taxes.

But then CFAI vol 4 page 274 and 275 defines NOPAT as opperating profit after taxes and bullet point 4 says deferred taxes are eliminated.

Now it sounds like they are the same thing.

Can anyone please help me with a clear understanding of what each of these are and how they are differant from each other?

Thanks in advance

NOPAT = NOPLAT - change in deferred taxes.

yup, if taxes are adjusted, then they are the same.

I was told that dealing with deferred taxes gets complicated so for exam purposes we can expect NOPAT and NOPLAT to be the same thing …EBIT(1-T)

do you agree with that?