Net Debt to NOPAT
Net Debt to NOPAT is a financial metric that measures a company's ability to manage its debt levels in relation to its net operating profit after taxes (NOPAT). It is calculated by dividing a company's net debt (total debt minus cash and cash equivalents) by its NOPAT.
The formula for Net Debt to NOPAT is:
Net Debt to NOPAT = Net Debt รท NOPAT
This metric helps investors understand a company's financial leverage and its ability to generate profits. Generally, a high Net Debt to NOPAT ratio indicates that a company has high debt levels in comparison to its operating performance, which may be a cause for concern. On the other hand, a low Net Debt to NOPAT ratio suggests the company has lower debt levels in relation to its ability to generate profits, which may be viewed positively by investors.
Additional Details
| Metric Name | Type | Default Period Type |
|---|---|---|
| net_debt_to_nopat | fin_metric | FY |
Formatting Details
| Data Format | Display Format | Unit |
|---|---|---|
| float | number | float |