Hi everybody Looking at the ROIC formula in chapter 11 I wonder if it should not simply read NOPLAT/NOA?
ROIC return on invested capital. Numerator is NOPLAT denumerator is invested Debt+Equity.
What is the difference between NOPLAT and NOPAT?
Noplat and nopat are the same thing.Have a look at the below link.
I looked at there are explanation that NOPLAT takes into account deferred taxes, otherwise it would be same. I am not sure if is such explanation correct. Also makes no sense that CFAI uses two terms for same thing without explanation.