How to Calculate NOPLAT for Operating ROIC

Both NOPLAT and ROIC can be easily misinterpreted and misused in its applications to understanding a business. NOPLAT gets especially mishandled due to its more well known cousin, NOPAT. Most of the time these are interchangeable, but when they’re not, it can really lead to a distortion in calculating ROIC. What is NOPLAT? NOPLAT stands […]

Deferred Income Tax Liabilities Explained (Real-Life Example in a 10-k)

Deferred income taxes in a company’s consolidated balance sheet and cash flow statement is an easy concept in principle, but when deferred income tax liabilities (or assets) change from year to year, that’s where it can get more confusing. The reason for deferred income tax liabilities and assets in the first place is because of […]