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.
Economic Profit
Comcast Corp., economic profit calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
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
= 26,540 – 9.56% × 233,085 = 4,259
The financial trajectory from 2021 to 2025 indicates a transition from economic value destruction to value creation. While the period began with significant negative economic profit, a combination of recovering operating income and a decreasing cost of capital resulted in a positive economic profit by the end of the observed timeframe.
- Net Operating Profit After Taxes (NOPAT)
- A volatile trend is observed in NOPAT, which experienced a sharp decline from 19,205 million US$ in 2021 to 6,839 million US$ in 2022. However, a strong recovery followed, with figures climbing steadily to 16,517 million US$ in 2023 and 18,803 million US$ in 2024, eventually reaching a peak of 26,540 million US$ by December 31, 2025.
- Cost of Capital
- The cost of capital remained relatively stable between 2021 and 2023, fluctuating slightly around the 11% mark. A downward trend emerged in the latter part of the period, with the rate decreasing to 10.12% in 2024 and further dropping to 9.56% in 2025, reducing the hurdle rate required to generate economic value.
- Invested Capital
- Invested capital showed a moderate contraction from 229,271 million US$ in 2021 to a low of 211,438 million US$ in 2023. This was followed by a period of expansion, with capital increasing to 215,138 million US$ in 2024 and expanding significantly to 233,085 million US$ by 2025.
- Economic Profit
- Economic profit remained negative for the majority of the period, indicating that NOPAT was insufficient to cover the cost of invested capital. The deficit peaked in 2022 at -16,503 million US$. A consistent recovery trend followed, with losses narrowing to -6,913 million US$ in 2023 and -2,968 million US$ in 2024. The trend culminated in a shift to positive economic profit in 2025, reaching 4,259 million US$, signifying that the entity began generating returns in excess of its cost of capital.
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Net Operating Profit after Taxes (NOPAT)
Comcast Corp., NOPAT calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Elimination of deferred tax expense. See details »
2 Addition of increase (decrease) in allowance for credit losses.
3 Addition of increase (decrease) in deferred revenue.
4 Addition of increase (decrease) in equity equivalents to net income attributable to Comcast Corporation.
5 2025 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 6,096 × 4.20% = 256
6 2025 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 4,665 × 21.00% = 980
7 Addition of after taxes interest expense to net income attributable to Comcast Corporation.
Net income attributable to Comcast Corporation and Net Operating Profit After Taxes (NOPAT) exhibited distinct performance patterns between 2021 and 2025. NOPAT demonstrated a more volatile trajectory compared to net income, with a significant decline in 2022 followed by a substantial recovery and continued growth through 2025. Net income, while also experiencing a decrease in 2022, maintained a more consistent upward trend from 2023 onwards.
- NOPAT Trend Analysis
- In 2021, NOPAT stood at US$19,205 million. A considerable decrease was observed in 2022, falling to US$6,839 million. This represents a substantial year-over-year decline. Subsequently, NOPAT experienced a strong recovery in 2023, reaching US$16,517 million. This positive momentum continued into 2024, with NOPAT increasing to US$18,803 million, and accelerated further in 2025, reaching US$26,540 million. The 2025 value represents the highest NOPAT recorded within the observed period.
- Net Income Trend Analysis
- Net income attributable to Comcast Corporation began at US$14,159 million in 2021. A significant reduction occurred in 2022, with net income decreasing to US$5,370 million. However, unlike NOPAT, the decline was not as drastic proportionally. From 2023 onwards, net income demonstrated consistent growth, increasing to US$15,388 million, then to US$16,192 million in 2024, and culminating in US$19,998 million in 2025. This indicates a sustained improvement in profitability over the latter part of the period.
The divergence between the trends in NOPAT and net income suggests potential shifts in the company’s capital structure or non-operating expenses. The substantial recovery in NOPAT from 2022 to 2025 indicates successful operational improvements or favorable changes in the operating environment. The consistent growth in net income from 2023 onwards reinforces a positive overall financial performance.
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Cash Operating Taxes
Comcast Corp., cash operating taxes calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The relationship between income tax expense and cash operating taxes demonstrates notable fluctuations over the five-year period. While both metrics represent tax-related financial obligations, their divergence suggests timing differences between reported accounting expense and actual cash outflows.
- Income Tax Expense
- Income tax expense initially decreased from US$5,259 million in 2021 to US$4,359 million in 2022, representing a decline of approximately 17%. It then increased to US$5,371 million in 2023, exceeding the 2021 level. A significant decrease was observed in 2024, falling to US$2,796 million, before rising substantially to US$6,106 million in 2025. This pattern indicates considerable volatility in the company’s reported tax liability.
- Cash Operating Taxes
- Cash operating taxes exhibited a different trend. An increase from US$4,326 million in 2021 to US$6,068 million in 2022 suggests a greater cash outflow for taxes despite the decrease in income tax expense during that period. This figure continued to rise sharply in 2023, reaching US$9,025 million. A substantial decline occurred in 2024, with cash operating taxes falling to US$4,622 million, followed by a slight decrease to US$4,412 million in 2025. The 2023 peak represents the highest value within the observed timeframe.
The divergence between income tax expense and cash operating taxes is particularly pronounced in 2022 and 2023. In 2022, income tax expense decreased while cash operating taxes increased, potentially indicating deferred tax liabilities being realized or changes in tax payment schedules. The substantial increase in cash operating taxes in 2023, coupled with a moderate increase in income tax expense, warrants further investigation into the underlying causes, such as changes in tax laws, audit adjustments, or accelerated tax payments. The decrease in both metrics in 2024 and the subsequent increase in income tax expense in 2025 suggest a reversal of some of these earlier effects.
The fluctuations in cash operating taxes are more significant than those in income tax expense, implying that the timing of cash tax payments is not directly correlated with the accounting recognition of tax expense. This difference is crucial when evaluating the company’s free cash flow and overall financial performance.
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Invested Capital
Comcast Corp., invested capital calculation (financing approach)
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Addition of capitalized operating leases.
2 Elimination of deferred taxes from assets and liabilities. See details »
3 Addition of allowance for doubtful accounts receivable.
4 Addition of deferred revenue.
5 Addition of equity equivalents to total Comcast Corporation shareholders’ equity.
6 Removal of accumulated other comprehensive income.
7 Subtraction of construction in process.
8 Subtraction of current investments.
The reported invested capital exhibited fluctuations over the five-year period. Total reported debt & leases and total shareholders’ equity both contribute to the calculation of invested capital, and their individual trends influence the overall invested capital figure.
- Invested Capital Trend
- Invested capital decreased from US$229,271 million in 2021 to US$213,299 million in 2022, representing a decline of approximately 7.4%. A further decrease was observed in 2023, falling to US$211,438 million. However, invested capital then increased to US$215,138 million in 2024, and continued to rise significantly in 2025, reaching US$233,085 million. This represents an overall increase of approximately 1.6% between 2021 and 2025.
- Debt & Leases Trend
- Total reported debt & leases remained relatively stable between 2021 and 2025. It decreased slightly from US$102,089 million in 2021 to US$101,593 million in 2022. A modest increase occurred in 2023, reaching US$103,676 million, followed by a further increase to US$105,413 million in 2024. The figure decreased slightly in 2025 to US$105,033 million. The overall change from 2021 to 2025 was minimal.
- Shareholders’ Equity Trend
- Total shareholders’ equity experienced a notable decrease from US$96,092 million in 2021 to US$80,943 million in 2022, a decline of approximately 15.7%. Shareholders’ equity then showed a modest recovery, increasing to US$82,703 million in 2023 and US$85,560 million in 2024. A significant increase was observed in 2025, with shareholders’ equity reaching US$96,903 million, returning to levels comparable to those observed in 2021.
The increase in invested capital in 2025 appears to be driven primarily by the substantial rise in shareholders’ equity, while debt & leases remained relatively constant. The earlier decline in invested capital between 2021 and 2023 was largely attributable to the decrease in shareholders’ equity during that period.
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Cost of Capital
Comcast Corp., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 107,072) | 107,072) | ÷ | 203,468) | = | 0.53 | 0.53 | × | 15.31% | = | 8.06% | ||
| Debt3 | 90,300) | 90,300) | ÷ | 203,468) | = | 0.44 | 0.44 | × | 4.00% × (1 – 21.00%) | = | 1.40% | ||
| Operating lease liability4 | 6,096) | 6,096) | ÷ | 203,468) | = | 0.03 | 0.03 | × | 4.20% × (1 – 21.00%) | = | 0.10% | ||
| Total: | 203,468) | 1.00 | 9.56% | ||||||||||
Based on: 10-K (reporting date: 2025-12-31).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 127,269) | 127,269) | ÷ | 223,389) | = | 0.57 | 0.57 | × | 15.31% | = | 8.72% | ||
| Debt3 | 89,800) | 89,800) | ÷ | 223,389) | = | 0.40 | 0.40 | × | 4.10% × (1 – 21.00%) | = | 1.30% | ||
| Operating lease liability4 | 6,320) | 6,320) | ÷ | 223,389) | = | 0.03 | 0.03 | × | 4.20% × (1 – 21.00%) | = | 0.09% | ||
| Total: | 223,389) | 1.00 | 10.12% | ||||||||||
Based on: 10-K (reporting date: 2024-12-31).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 184,850) | 184,850) | ÷ | 283,636) | = | 0.65 | 0.65 | × | 15.31% | = | 9.98% | ||
| Debt3 | 92,200) | 92,200) | ÷ | 283,636) | = | 0.33 | 0.33 | × | 4.00% × (1 – 21.00%) | = | 1.03% | ||
| Operating lease liability4 | 6,586) | 6,586) | ÷ | 283,636) | = | 0.02 | 0.02 | × | 4.10% × (1 – 21.00%) | = | 0.08% | ||
| Total: | 283,636) | 1.00 | 11.08% | ||||||||||
Based on: 10-K (reporting date: 2023-12-31).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 168,516) | 168,516) | ÷ | 262,198) | = | 0.64 | 0.64 | × | 15.31% | = | 9.84% | ||
| Debt3 | 86,900) | 86,900) | ÷ | 262,198) | = | 0.33 | 0.33 | × | 3.90% × (1 – 21.00%) | = | 1.02% | ||
| Operating lease liability4 | 6,782) | 6,782) | ÷ | 262,198) | = | 0.03 | 0.03 | × | 3.97% × (1 – 21.00%) | = | 0.08% | ||
| Total: | 262,198) | 1.00 | 10.94% | ||||||||||
Based on: 10-K (reporting date: 2022-12-31).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 226,616) | 226,616) | ÷ | 343,155) | = | 0.66 | 0.66 | × | 15.31% | = | 10.11% | ||
| Debt3 | 109,300) | 109,300) | ÷ | 343,155) | = | 0.32 | 0.32 | × | 3.74% × (1 – 21.00%) | = | 0.94% | ||
| Operating lease liability4 | 7,239) | 7,239) | ÷ | 343,155) | = | 0.02 | 0.02 | × | 3.94% × (1 – 21.00%) | = | 0.07% | ||
| Total: | 343,155) | 1.00 | 11.12% | ||||||||||
Based on: 10-K (reporting date: 2021-12-31).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
Economic Spread Ratio
Comcast Corp., economic spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Economic profit1 | 4,259) | (2,968) | (6,913) | (16,503) | (6,286) | |
| Invested capital2 | 233,085) | 215,138) | 211,438) | 213,299) | 229,271) | |
| Performance Ratio | ||||||
| Economic spread ratio3 | 1.83% | -1.38% | -3.27% | -7.74% | -2.74% | |
| Benchmarks | ||||||
| Economic Spread Ratio, Competitors4 | ||||||
| Alphabet Inc. | 26.54% | 22.42% | 15.78% | 7.39% | 26.68% | |
| Meta Platforms Inc. | 16.71% | 13.86% | 6.77% | 0.52% | 22.81% | |
| Netflix Inc. | 1.00% | -3.69% | -9.95% | -10.48% | -5.88% | |
| Walt Disney Co. | -12.40% | -15.81% | -17.33% | -15.13% | -18.12% | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Economic profit. See details »
2 Invested capital. See details »
3 2025 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × 4,259 ÷ 233,085 = 1.83%
4 Click competitor name to see calculations.
The financial trajectory over the five-year period reveals a transition from economic value destruction to economic value creation. After a significant decline in performance during 2022, a consistent recovery trend emerged, culminating in the achievement of positive economic profit and a positive economic spread ratio by the end of 2025.
- Economic Profit
- Economic profit exhibited substantial volatility, starting at a deficit of US$ 6,286 million in 2021 and widening to a peak loss of US$ 16,503 million in 2022. Following this trough, a steady recovery was observed, with losses narrowing to US$ 6,913 million in 2023 and US$ 2,968 million in 2024. The trend reached a turning point in 2025, shifting to a positive economic profit of US$ 4,259 million, indicating that the company began generating returns in excess of its cost of capital.
- Invested Capital
- Invested capital remained relatively stable with a slight downward trend in the initial years, decreasing from US$ 229,271 million in 2021 to a low of US$ 211,438 million in 2023. A subsequent increase occurred over the final two years, with capital rising to US$ 215,138 million in 2024 and reaching US$ 233,085 million by 2025. This indicates an expansion of the capital base coinciding with the period of positive economic profit.
- Economic Spread Ratio
- The economic spread ratio mirrors the trend seen in economic profit, reflecting the efficiency of capital utilization relative to the cost of capital. The ratio declined from -2.74% in 2021 to -7.74% in 2022, marking the period of lowest efficiency. An incremental recovery followed, with the ratio improving to -3.27% in 2023 and -1.38% in 2024. By 2025, the ratio turned positive at 1.83%, confirming that the return on invested capital has finally surpassed the weighted average cost of capital.
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Economic Profit Margin
Comcast Corp., economic profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Economic profit1 | 4,259) | (2,968) | (6,913) | (16,503) | (6,286) | |
| Revenue | 123,707) | 123,731) | 121,572) | 121,427) | 116,385) | |
| Add: Increase (decrease) in deferred revenue | 546) | 312) | 745) | (620) | 22) | |
| Adjusted revenue | 124,253) | 124,043) | 122,317) | 120,807) | 116,407) | |
| Performance Ratio | ||||||
| Economic profit margin2 | 3.43% | -2.39% | -5.65% | -13.66% | -5.40% | |
| Benchmarks | ||||||
| Economic Profit Margin, Competitors3 | ||||||
| Alphabet Inc. | 20.35% | 14.56% | 9.73% | 5.28% | 17.70% | |
| Meta Platforms Inc. | 17.94% | 13.98% | 7.09% | 0.46% | 17.92% | |
| Netflix Inc. | 0.97% | -3.84% | -11.13% | -12.50% | -6.87% | |
| Walt Disney Co. | -21.70% | -28.77% | -33.84% | -31.15% | -46.18% | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Economic profit. See details »
2 2025 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted revenue
= 100 × 4,259 ÷ 124,253 = 3.43%
3 Click competitor name to see calculations.
The financial trajectory from 2021 to 2025 reflects a transition from significant economic value destruction to positive value creation. While the period began with negative economic profit, a consistent recovery trend emerged following a sharp decline in 2022, culminating in the attainment of a positive economic profit margin by the end of 2025.
- Adjusted Revenue Growth
- Adjusted revenue exhibited a steady and incremental upward trend throughout the five-year period. Starting at 116,407 million US dollars in 2021, revenue grew consistently to reach 124,253 million US dollars by 2025. This indicates a stable top-line expansion that provided a consistent base for the eventual recovery of economic profitability.
- Economic Profit Volatility and Recovery
- Economic profit experienced a severe contraction in 2022, dropping to a deficit of 16,503 million US dollars. Following this trough, a sustained recovery occurred, reducing the deficit to 6,913 million US dollars in 2023 and further to 2,968 million US dollars in 2024. The trend concluded with a reversal into positive territory in 2025, yielding an economic profit of 4,259 million US dollars.
- Economic Profit Margin Analysis
- The economic profit margin mirrors the volatility of the absolute economic profit. The margin deteriorated from -5.40% in 2021 to a period low of -13.66% in 2022. Subsequent improvements saw the margin rise to -5.65% in 2023 and -2.39% in 2024. The shift to a positive margin of 3.43% in 2025 signifies that the company's net operating profit after taxes has surpassed its cost of capital, marking a fundamental shift in the efficiency of capital utilization.
In summary, the analysis indicates that despite a period of substantial economic loss centered around 2022, the company successfully implemented a recovery path. The convergence of steady revenue growth and improving economic profit margins suggests an enhanced ability to generate returns exceeding the required cost of capital by the end of the observed period.
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