Net Profit after tax
Getting to Know the P&L Statement: Net Profit after tax
The Net Profit After Tax (NPAT) is an important financial measure that shows how profitable a business is after all taxes are taken out of its income. To find it, take the company's profit before taxes (PBT) and take away all of its taxes.
Mathematically, NPAT can be expressed as:
NPAT=Profit Before Tax (PBT)−Taxes
You can think of NPAT as the amount of money a business made after paying all of its taxes. It's an important indicator of a business's financial health and success because it shows how well it can make money while also meeting its tax obligations.
Investors, analysts, and other stakeholders closely watch NPAT to see how profitable and financially stable a business is. It is usually included in a company's financial statements, like the income statement (Profit and Loss statement).
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Table of Contents: Getting to Know the P&L Statement 1. Introduction of the financial statements 2. The Profit and Loss statement |
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