They look the same. Can someone identify what the difference is?
Same. The L stands for Loss…
NOPLAT = EBITDA - Dep- Taxes NOPAT = EBIT(1-T) They are the same, in my view.
Yes, I initlaly thought I had written it down wrong…then I thought it was a CFAI typo then I realized…who cares they are the same thing
no, the L does not stand for loss, it stands for “less”. NOPLAT = net operating profit less adjusted tax NOPAT = net operating profit after tax so if adjusted tax = tax, then they are the same.
I believe NOPLAT is used when adjusting taxes for companies in inflationary markets Check out Kaplan LOS 41. B for a quick example
NOPLAT is for LESS ADJUSTED TAXES This comes into play when your NCC (non-cash charges) include deferred taxes. These taxes were not actually paid out, thus it’s an add-back. If there are no deferred taxes, then NOPAT = NOPLAT
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