mafa
This query is : Resolved
29 August 2010
can sum1 tel me all d possible ways of finding nopat frm ebit???
CA Ghanshyam Joshi
(Expert)
30 August 2010
For EVA Calculation - NOPAT = EBIT after Tax, for this purpose calculate Tax at country specific rate or at effective tax rate on EBIT. Reduce the Tax calculated from the EBIT, the result will be NOPAT. From the NOPAT if we deduct the Capital Charge then the result will be EVA.
CA Ghanshyam Joshi
(Expert)
30 August 2010
Net sales
- Cost of goods sold
= Gross profit
- R&D expenses
M&S expenses
General & admin. expenses
Other op. expenses / income
= EBIT
= operating profit before tax
+/- tax
= NOPAT
- Cost of goods sold
= Gross profit
- R&D expenses
M&S expenses
General & admin. expenses
Other op. expenses / income
= EBIT
= operating profit before tax
+/- tax
= NOPAT
05 September 2010
wht abt dep?? Can i deduct int thn deduct tax n thn add back int?? If yes can i add entire int or int after tax??
CA Ghanshyam Joshi
(Expert)
06 September 2010
Depn to be deducted as cost for arriving at EBIT. Do not deduct Interect. Calculate the Tax on EBIT. Tax is to be calculated on EBIT at Economical Tax Rate (i.e. at the average tax rate applicable for that entity). Interest will be taken care by Capital Charge which is a notional interest at weighted average cost of capital.
CA Ghanshyam Joshi
(Expert)
07 September 2010
Dear,
I am not giving you any bookish knowledge. This is what in practical we use to calculate EVA in our organization. For your kind information I am working in a MNC as Manager Controlling. I have total approx 16 yrs industrial experiance.
Henceforth whenever you reply to anybody, double check your language used.
I am not giving you any bookish knowledge. This is what in practical we use to calculate EVA in our organization. For your kind information I am working in a MNC as Manager Controlling. I have total approx 16 yrs industrial experiance.
Henceforth whenever you reply to anybody, double check your language used.
10 September 2010
look i really dont care who has wht damn experience! Sumtyms ppl r knowlegdeable but they cnt cme dwn to d student level n pass on wht they need so such ppl dnt make good advises frm students point of view! n i hvnt made any personal comment on any1s qualification or experience!
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