what's the difference between NOPLAT, NOPAT, CFO

CFA Level II
#1

CFO = Net Income + Non cash charges - working capital investment NOPLAT = Net Income + net interest after tax + change in deferred taxes waht is NOPAT? where are these NOPLAT and NOPAT used?

#2

NOPAT=EBIT(1 - Tax Rate). NOPLAT is very similar to nopat except it’s Net Income + after-tax interest expense + deferred taxes.

#3

thanks, you guys probably studied more than 280 hours rellison Wrote: ------------------------------------------------------- > NOPAT=EBIT(1 - Tax Rate). > NOPLAT is very similar to nopat except it’s Net > Income + after-tax interest expense + deferred > taxes.

#4

So basically, in the absence of deferred taxes (that is, when the firm’s accounting (financial statements) taxes equal to the taxes on Internal Revenue Service filing), NOPAT will be equal to NOPLAT because NOPLAT=NOPAT+Defferred Taxes.

#5

> NOPLAT = Net Income + net interest after tax + change in deferred taxes This should be +/- differed taxes, as you would add a DTL and subtract a DTA, if they are expected to grow.