Economic Value Added (EVA)
EVA is registered trademark of Stern Stewart.
Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.
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- Common-Size Income Statement
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Operating Profit Margin since 2005
- Price to Earnings (P/E) since 2005
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Economic Profit
Apple Inc., economic profit calculation
US$ in millions
| 12 months ended: | Sep 27, 2025 | Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | |
|---|---|---|---|---|---|---|---|
| Net operating profit after taxes (NOPAT)1 | |||||||
| Cost of capital2 | |||||||
| Invested capital3 | |||||||
| Economic profit4 | |||||||
Based on: 10-K (reporting date: 2025-09-27), 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26).
1 NOPAT. See details »
2 Cost of capital. See details »
3 Invested capital. See details »
4 2025 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= – × =
The financial data presents key performance indicators over six consecutive fiscal years, showing the following notable trends and observations:
- Net Operating Profit After Taxes (NOPAT)
-
The NOPAT exhibits an overall upward trajectory with intermittent fluctuations. Starting at approximately 58.7 billion USD in the fiscal year ending September 2020, it increased substantially to 101.7 billion USD by September 2022. A subsequent decrease to 94.3 billion USD in September 2023 and a slight dip to 91.8 billion USD in September 2024 is noted, followed by a pronounced rebound to 112.2 billion USD in the latest period. This pattern suggests strong profitability growth interrupted by short-term declines, possibly reflecting market or operational challenges during those years.
- Cost of Capital
-
The cost of capital demonstrates a gradual increase over the analyzed periods, rising from 15.75% in 2020 to 16.33% in 2025. This steady increase might indicate a rising risk profile or changes in market interest rates, impacting the company’s capital costs and potentially influencing investment decisions.
- Invested Capital
-
The invested capital shows a more volatile trend. It starts at 36.3 billion USD in 2020, increasing gradually until reaching 60.2 billion USD in 2023. A sharp decrease to 50.1 billion USD is observed in 2024, followed by a significant surge to 88.9 billion USD in 2025. This volatility may suggest changing investment strategies, asset acquisitions or disposals, or significant capital allocation adjustments during these years.
- Economic Profit
-
Economic profit strongly parallels the patterns observed in NOPAT, starting at approximately 53.0 billion USD in 2020 and climbing steadily to 94.2 billion USD in 2022. A decrease to 84.5 billion USD in 2023 and a marginal drop to 83.7 billion USD in 2024 occur before a recovery to 97.7 billion USD in 2025. The trend indicates that the company consistently generates value above its cost of capital despite the noted fluctuations.
In summary, the company demonstrates robust profitability and value creation over the examined period, though it faces increases in the cost of capital and occasional volatility in invested capital. The fluctuations in operating profit and economic profit likely reflect cyclical factors or strategic operational changes. The strong rebound in the most recent year signals effective management and potential growth prospects moving forward.
Net Operating Profit after Taxes (NOPAT)
Apple Inc., NOPAT calculation
US$ in millions
Based on: 10-K (reporting date: 2025-09-27), 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26).
1 Elimination of deferred tax expense. See details »
2 Addition of increase (decrease) in deferred revenue.
3 Addition of increase (decrease) in equity equivalents to net income.
4 2025 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= × =
5 2025 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= × 21.00% =
6 Addition of after taxes interest expense to net income.
7 2025 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= × 21.00% =
8 Elimination of after taxes investment income.
- Net Income Trend
- Over the observed periods, net income exhibits an overall upward trajectory with some fluctuations. Starting at 57,411 million USD in 2020, there is a substantial increase to 94,680 million USD in 2021. This growth continues moderately to 99,803 million USD in 2022. However, a decline is noted in 2023 and 2024, with net income decreasing to 96,995 million USD and then further to 93,736 million USD, respectively. By 2025, net income rebounds strongly to reach a new peak of 112,010 million USD, indicating recovery and growth surpassing previous highs.
- Net Operating Profit After Taxes (NOPAT) Development
- NOPAT follows a pattern generally similar to net income but with higher values each year, suggesting efficient operational profitability. Beginning at 58,673 million USD in 2020, there is an increase to 91,407 million USD in 2021. Growth continues, peaking at 101,652 million USD in 2022. A decline follows in 2023 and 2024, with NOPAT reducing to 94,296 million USD and 91,849 million USD, respectively. By 2025, NOPAT increases significantly to 112,234 million USD, slightly exceeding net income, which reflects enhanced operational efficiency and profitability.
- Comparative Observations
- Both net income and NOPAT demonstrate strong growth from 2020 to 2022, followed by a moderate downtrend in 2023 and 2024. The consistent lead of NOPAT over net income across all periods implies effective cost and tax management at the operational level. The sharp rise in 2025 for both metrics indicates a robust financial performance recovery and enhancement relative to prior years, suggesting strengthened earnings capability and possibly improved operational strategies or market conditions.
Cash Operating Taxes
Apple Inc., cash operating taxes calculation
US$ in millions
Based on: 10-K (reporting date: 2025-09-27), 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26).
- Provision for Income Taxes
- The provision for income taxes shows an overall increasing trend from 9,680 million USD in 2020 to a peak of 29,749 million USD in 2024, followed by a decline to 20,719 million USD in 2025. This pattern suggests variability in taxable income or changes in tax rates over the period. The sharp rise between 2023 and 2024 indicates a significant increase in tax expense, which substantially decreases the following year.
- Cash Operating Taxes
- Cash operating taxes also exhibit a rising trend from 9,729 million USD in 2020 to 32,898 million USD in 2024, aligning with the upward movement in income tax provision. The cash taxes peak in 2024 and then decrease to 22,234 million USD in 2025. This correlation with the provision for income taxes highlights increased tax payments matching the higher tax expense recorded, with both showing a marked increase in the 2023-2024 timeframe before receding.
- Insights and Comparison
- The close movement of provision for income taxes and cash operating taxes indicates consistency between tax accruals and actual tax payments over time. The notable spikes in both metrics during 2023-2024 suggest either a period of elevated profitability, changes in tax legislation, or other factors influencing taxable income and cash outflows related to taxes. The subsequent decline in 2025 may reflect adjustments, reductions in taxable income, or deferred tax strategies.
- Conclusion
- The tax-related financial data reveal a pattern of rising tax expenses and payments over most of the observed period, peaking in 2024 before decreasing in the final year. Continuous monitoring is advisable to understand the underlying causes of these fluctuations and their impact on the company's effective tax rate and cash flow management.
Invested Capital
Apple Inc., invested capital calculation (financing approach)
US$ in millions
Based on: 10-K (reporting date: 2025-09-27), 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26).
1 Addition of capitalized operating leases.
2 Elimination of deferred taxes from assets and liabilities. See details »
3 Addition of deferred revenue.
4 Addition of equity equivalents to shareholders’ equity.
5 Removal of accumulated other comprehensive income.
6 Subtraction of marketable securities.
- Total Reported Debt & Leases
- The total reported debt and leases demonstrate a fluctuating downward trend over the six-year period. Starting at US$122,278 million in 2020, the value peaks in 2021 at US$136,522 million, then generally declines each subsequent year, reaching US$112,377 million in 2025. This indicates a progressive reduction in the company's debt and lease obligations after 2021, suggesting an improvement in leverage management or a shift in financing strategy.
- Shareholders' Equity
- Shareholders' equity exhibits variability throughout the examined period. It begins at US$65,339 million in 2020 and decreases slightly to US$63,090 million in 2021. A more pronounced drop occurs in 2022, with equity declining to US$50,672 million. However, this is followed by a recovery in 2023 to US$62,146 million, a slight decrease in 2024, and a significant increase to US$73,733 million in 2025. The volatility in equity suggests periods of share repurchases, dividend payments, or other equity transactions impacting the book value.
- Invested Capital
- Invested capital shows a consistent upward trend with some fluctuations. Starting at US$36,252 million in 2020, it increases steadily through 2021 and 2022, reaching US$46,661 million. There is a notable rise in 2023 to US$60,243 million, followed by a drop to US$50,072 million in 2024. The figure peaks significantly at US$88,915 million in 2025. This overall growth in invested capital could indicate increased asset investments or changes in working capital, reflecting expansion or reinvestment strategies.
Cost of Capital
Apple Inc., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Commercial paper, term debt, and finance leases3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2025-09-27).
1 US$ in millions
2 Equity. See details »
3 Commercial paper, term debt, and finance leases. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Commercial paper, term debt, and finance leases3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2024-09-28).
1 US$ in millions
2 Equity. See details »
3 Commercial paper, term debt, and finance leases. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Commercial paper, term debt, and finance leases3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2023-09-30).
1 US$ in millions
2 Equity. See details »
3 Commercial paper, term debt, and finance leases. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Commercial paper, term debt, and finance leases3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2022-09-24).
1 US$ in millions
2 Equity. See details »
3 Commercial paper, term debt, and finance leases. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Commercial paper, term debt, and finance leases3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2021-09-25).
1 US$ in millions
2 Equity. See details »
3 Commercial paper, term debt, and finance leases. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Commercial paper, term debt, and finance leases3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2020-09-26).
1 US$ in millions
2 Equity. See details »
3 Commercial paper, term debt, and finance leases. See details »
4 Operating lease liability. See details »
Economic Spread Ratio
Apple Inc., economic spread ratio calculation, comparison to benchmarks
| Sep 27, 2025 | Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Economic profit1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| Economic spread ratio3 | |||||||
| Benchmarks | |||||||
| Economic Spread Ratio, Competitors4 | |||||||
| Arista Networks Inc. | |||||||
| Cisco Systems Inc. | |||||||
| Dell Technologies Inc. | |||||||
| Super Micro Computer Inc. | |||||||
Based on: 10-K (reporting date: 2025-09-27), 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26).
1 Economic profit. See details »
2 Invested capital. See details »
3 2025 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
The financial data over the observed periods reflect significant fluctuations and trends across key metrics.
- Economic Profit
- The economic profit shows an overall increasing trend from 52,965 million US$ in 2020 to 97,712 million US$ in 2025. There was a notable rise from 2020 to 2022, peaking at 94,175 million US$, followed by a decline in 2023 and 2024 before climbing again in 2025. This pattern suggests some variability in profitability but a positive trajectory in the long term.
- Invested Capital
- Invested capital increased steadily from 36,252 million US$ in 2020 to 60,243 million US$ in 2023, indicating growing assets or resources committed to operations. However, a drop to 50,072 million US$ was observed in 2024, succeeded by a substantial increase to 88,915 million US$ in 2025. This volatility in capital investment may reflect strategic shifts or operational adjustments.
- Economic Spread Ratio
- The economic spread ratio, which measures the efficiency of capital use, was highest in 2022 at 201.83%. It began at 146.1% in 2020, climbed sharply through 2021 and 2022, then declined significantly in 2023 to 140.34%. It experienced a moderate recovery in 2024 at 167.17% before falling again to 109.89% in 2025. This downward trend in the later years could imply reduced effectiveness in generating returns relative to capital invested.
In summary, while economic profit has generally increased, the invested capital and economic spread ratio exhibit considerable variability. This indicates dynamic capital management and fluctuating operational efficiency, with recent periods showing signs of decreasing capital efficiency despite growing absolute profits.
Economic Profit Margin
Apple Inc., economic profit margin calculation, comparison to benchmarks
| Sep 27, 2025 | Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Economic profit1 | |||||||
| Net sales | |||||||
| Add: Increase (decrease) in deferred revenue | |||||||
| Adjusted net sales | |||||||
| Performance Ratio | |||||||
| Economic profit margin2 | |||||||
| Benchmarks | |||||||
| Economic Profit Margin, Competitors3 | |||||||
| Arista Networks Inc. | |||||||
| Cisco Systems Inc. | |||||||
| Dell Technologies Inc. | |||||||
| Super Micro Computer Inc. | |||||||
Based on: 10-K (reporting date: 2025-09-27), 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26).
1 Economic profit. See details »
2 2025 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted net sales
= 100 × ÷ =
3 Click competitor name to see calculations.
- Economic Profit
- The economic profit demonstrated a general upward trend over the observed periods, increasing from 52,965 million US dollars in 2020 to 97,712 million US dollars in 2025. There was a notable peak in 2022 at 94,175 million US dollars, followed by a slight decline in 2023 and 2024, before rising again significantly in 2025. This indicates fluctuating but overall increasing profitability from an economic value perspective.
- Adjusted Net Sales
- Adjusted net sales showed a consistent increase throughout the timeframe, progressing from 276,615 million US dollars in 2020 to 417,061 million US dollars in 2025. The largest incremental growth was observed between 2020 and 2021. Although sales slightly declined in 2023 compared to 2022, the sales rebounded and continued the upward trajectory moving into 2024 and 2025, reflecting overall strong revenue growth.
- Economic Profit Margin
- The economic profit margin followed a pattern of increase with some volatility, starting at 19.15% in 2020 and rising to 23.43% in 2025. The highest margin was recorded in 2022 at approximately 23.85%, with a decrease during 2023 and 2024 to around 21%, before recovering in 2025. This margin trend mirrors the changes observed in economic profit, suggesting that profitability relative to sales has generally improved over the examined years despite short-term fluctuations.