Appendix 12B: Parsimonious Method for Forecasting NOPAT and NOA This appendix explains a parsimonious method to obtain forecast for net operating profit after tax (NOPAT) and for net operating assets (NOA). This method requires three crucial inputs: 1. Sales growth. 2. Net operating profit margin (NOPM); Defined in Module 4 as NOPAT divide by sales. 3. Net operating asset turnover (NOAT); defined in Module 4 as sales divide by average NOA. (For forecasting purposes, we define NOAT as sales divide by year-end NOA instead of average NOA because we want to forecast year-end values.)