Detailed Net Income to NOPAT Reconciliation
The detailed adjustments dataset featured in the HBS & MIT Sloan Paper that we use to convert Reported Net Income to NOPAT.
GAAP Net Income
+ 11 Categories of Non-Operating Expense Hidden in Operating Earnings
+ 14 Categories ofReported Net Non-Operating Expense
+ Change in Total Reserves
+ Goodwill Amortization
- ESO Expense (Employee Stock Options)
+ Interest for PV of Operating Leases
+ Non-Operating Tax Adjustments
+ 5 Categories of Net After-Tax Non-Operating Expense/Income
= NOPAT (Net Operating Profit After Tax)
Schedule a Meeting to Get Backtest Data
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