NOPAT is intended to measure profit from business operations only. Specifically, these adjustments and conversions remove, as much as possible, the effects of investments for other than business purposes, e.g., influences unrelated to regular business activities. Also, funding conversions aim to standardize the impact of hidden funding features. The tax conversions calculate the theoretical tax burden that would be borne by the company were it exclusively financed by equity and earning profits only from its business activities. Thus it eliminates distortions of profit (and associated tax effects) resulting from interest payments and non-business components of profits. Shareholder value conversions remove further distortions caused by the reporting methods chosen for certain items on the balance sheet. Adjustments of the profit measure NOPAT are made in accordance with the asset measure: capital.