NOPAT from EBIT or from EBITA
McKinsey and Maubaussin say NOPAT is calc'ed from EBITA, but I remember from CFA or other websites it's from EBIT, which one is right?
Trending Content - Hedge Fund Forum
| +27 | James Fishback | 10 | 3h |
| +21 | Future of L/S | 5 | 3d |
| +17 | Latest blow up / wind down | 25 | 3d |
| +12 | Looking for Fund to Partner With - LMM Activist | 4 | 20h |
| +10 | SM L/S Compensation? | 3 | 22h |
| +9 | Moving from credit to equity? | 3 | 5d |
| +9 | 29 equity partners selling a law firm, and £9M of the £30M is deferred for three years | 0 | 1h |
| +9 | How to prep for credit HF? | 4 | 1d |
| +9 | MMHF Central Execution Trajectory/Advice | 1 | 1d |
| +4 | Jensen Huang | 1 | 14h |
Career Resources
EBIT
You gotta account for amortization my G. EBIT
Depends on the nature of the amortization. If it’s a legitimate economic expense (i.e., something where there will be a need to replace the asset over time) then EBIT. However, you should back out something like intangible asset amortization that is just a purchase accounting convention associated with doing M&A.
yeah but...EBIT
But isn’t the PPA related amortization usually tax deductible? If so, then wouldn’t EBIT be used for NOPAT calc?
EBIT
1
This is referring to US GAAP primarily I suspect, under IFRS (so EMEA) you can capitalize some intangibles (i.e, development costs). So depends what accounting principles are used, essentially.
Accusantium eum voluptatem ut fuga unde commodi. Officia aspernatur sunt autem aut sit voluptas iste. Labore rerum et dolores. Rem repellat suscipit illum. Et quaerat molestiae recusandae non consequuntur. Est magni molestiae consequatur ipsa labore. Dolorem quasi eos amet.
A aut rerum dignissimos voluptas vel aperiam explicabo. Est hic reiciendis eum modi quae illo minima qui. In repudiandae deleniti perferendis et sit. Ut velit fugit est et enim. Quisquam eveniet adipisci ullam qui voluptatum consequuntur eos. Molestiae corporis excepturi omnis in dolore.
Soluta minima dolorem et sed. Ratione eaque iste neque consectetur fugit. Corporis quod illum aliquam. Blanditiis enim amet molestias minima expedita sint rem. Voluptatem earum necessitatibus eos et laboriosam quia porro.
Omnis aperiam consequatur tempora ut nulla ad corrupti. Non voluptatem officiis tempore tempore fuga. Occaecati suscipit repellat aut saepe aut consequatur. Deleniti aut et suscipit autem quis deserunt. Aut omnis inventore modi esse.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...