The Formula
(Expressed as a %)
It is similar to Return on Assets (ROA), but takes into account sources of financing. Net Operating Profit After Tax (NOPAT) is equal to EBIT * (1 - tax) -- the return on the capital employed should be measured in after tax terms.
Read more about this topic: Return On Capital Employed
Famous quotes containing the word formula:
“In the most desirable conditions, the child learns to manage anxiety by being exposed to just the right amounts of it, not much more and not much less. This optimal amount of anxiety varies with the child’s age and temperament. It may also vary with cultural values.... There is no mathematical formula for calculating exact amounts of optimal anxiety. This is why child rearing is an art and not a science.”
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