Net Operating Profit Less Adjusted Taxes
The Net Operating Profit Less Adjusted Taxes ( NOPLAT ; in German business result less adjusted taxes ; also known as Earnings Before Interest , EBI ) is a business figure that describes the operating profit adjusted for the taxes paid.
backgrounds
The NOPLAT is very similar to the net operating profit after taxes (NOPAT) , which describes the operating profit of a company adjusted for actual taxes . If there are no borrowing costs, both key figures are the same. However, since no taxes are to be paid on borrowing costs, the taxes paid are lower than those calculated fictitiously.
calculation
NOPLAT = EBIT - (adjusted) taxes on the operating result