A company's net operating profit less adjusted taxes, or NOPLAT, shows the company's profits with adjustments made for taxes. It excludes non-operating income such as investments. The calculation is intended to show the income available to both debt and equity holders before payments are made.

## NOPLAT Formula

To figure a company's NOPLAT, you start by calculating its operating profit, which equals the company's operating income minus operating expenses. This eliminates non-operating costs, such as interest on debt, from the formula. Next, multiply the result by the tax rate the company pays to figure out how much is left after taxes. For example, if a company has $500,000 in operating profit and pays a 20 percent tax rate, multiply $500,000 by 20 percent to get $400,000.