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 – 9.55% × 233,085 = 4,283
The financial performance between 2021 and 2025 is characterized by a transition from consistent economic value destruction to the achievement of positive economic profit. This shift is primarily driven by a substantial recovery in net operating profit after taxes (NOPAT) and a gradual reduction in the weighted cost of capital.
- Net Operating Profit After Taxes (NOPAT)
- A period of significant volatility is observed, with NOPAT dropping sharply from US$ 19,205 million in 2021 to US$ 6,839 million in 2022. However, a sustained recovery trend followed, with figures rising to US$ 16,517 million in 2023 and reaching a peak of US$ 26,540 million by 2025. This upward trajectory indicates a strong recovery in operational profitability.
- Cost of Capital and Invested Capital
- The cost of capital remained relatively stable, fluctuating around 11% from 2021 to 2023, before declining to 10.11% in 2024 and further to 9.55% in 2025. Invested capital followed a U-shaped pattern, decreasing from US$ 229,271 million in 2021 to a low of US$ 211,438 million in 2023, before expanding to US$ 233,085 million by 2025. The simultaneous decrease in the cost of capital and the increase in invested capital in the final year suggests an improved efficiency in capital deployment.
- Economic Profit Trends
- Economic profit remained negative for the majority of the period, reflecting a failure to generate returns exceeding the cost of capital. The deficit deepened to its widest point of -US$ 16,476 million in 2022. A consistent narrowing of this gap is observed between 2023 and 2024, culminating in a pivot to positive economic profit of US$ 4,283 million in 2025. This transition signifies that the organization shifted from eroding shareholder value to creating genuine economic value.
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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$96,903 million, returning to levels comparable to those observed in 2021.
The increase in invested capital in 2025 appears to be driven primarily by the substantial rise in shareholders’ equity, while debt & leases remained relatively constant. The earlier decline in invested capital between 2021 and 2023 was largely attributable to the decrease in shareholders’ equity during that period.
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Cost of Capital
Comcast Corp., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 107,072) | 107,072) | ÷ | 203,468) | = | 0.53 | 0.53 | × | 15.29% | = | 8.05% | ||
| Debt3 | 90,300) | 90,300) | ÷ | 203,468) | = | 0.44 | 0.44 | × | 4.00% × (1 – 21.00%) | = | 1.40% | ||
| Operating lease liability4 | 6,096) | 6,096) | ÷ | 203,468) | = | 0.03 | 0.03 | × | 4.20% × (1 – 21.00%) | = | 0.10% | ||
| Total: | 203,468) | 1.00 | 9.55% | ||||||||||
Based on: 10-K (reporting date: 2025-12-31).
1 US$ 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 | × | 15.29% | = | 8.71% | ||
| 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 | 10.11% | ||||||||||
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 | × | 15.29% | = | 9.97% | ||
| 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 | 11.07% | ||||||||||
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 | × | 15.29% | = | 9.83% | ||
| 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 | 10.93% | ||||||||||
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 | × | 15.29% | = | 10.10% | ||
| 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 | 11.11% | ||||||||||
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 | 4,283) | (2,944) | (6,886) | (16,476) | (6,256) | |
| Invested capital2 | 233,085) | 215,138) | 211,438) | 213,299) | 229,271) | |
| Performance Ratio | ||||||
| Economic spread ratio3 | 1.84% | -1.37% | -3.26% | -7.72% | -2.73% | |
| Benchmarks | ||||||
| Economic Spread Ratio, Competitors4 | ||||||
| Alphabet Inc. | 26.43% | 22.30% | 15.67% | 7.28% | 26.56% | |
| Meta Platforms Inc. | 16.53% | 13.67% | 6.59% | 0.34% | 22.62% | |
| Netflix Inc. | 0.64% | -4.05% | -10.30% | -10.83% | -6.22% | |
| Trade Desk Inc. | 8.99% | -8.06% | -14.73% | -17.39% | -10.58% | |
| Walt Disney Co. | -12.64% | -16.04% | -17.56% | -15.36% | -18.36% | |
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 × 4,283 ÷ 233,085 = 1.84%
4 Click competitor name to see calculations.
A multi-year recovery trend is evident in the economic performance metrics, characterized by a transition from significant value destruction to value creation by the end of the analyzed period. While the initial years were marked by negative economic profits and spread ratios, a consistent upward trajectory began after 2022, culminating in positive figures for the 2025 fiscal year.
- Economic Profit Analysis
- Economic profit experienced a sharp decline in 2022, reaching a trough of negative 16,476 million US dollars. Following this low point, a steady recovery was observed, with losses narrowing to 6,886 million US dollars in 2023 and further reducing to 2,944 million US dollars in 2024. The trend concluded with a pivotal shift in 2025, where economic profit turned positive at 4,283 million US dollars, signaling that the entity began generating returns in excess of its cost of capital.
- Invested Capital Dynamics
- Invested capital showed a period of contraction between 2021 and 2023, declining from 229,271 million US dollars to 211,438 million US dollars. This reduction in the capital base was followed by a gradual increase in 2024 and a more pronounced rise in 2025, reaching 233,085 million US dollars. The increase in invested capital during the final two years coincided with the improvement in economic profit, suggesting that new capital deployments were productive.
- Economic Spread Ratio Trends
- The economic spread ratio mirrored the trajectory of economic profit, reflecting the gap between the return on invested capital and the weighted average cost of capital. The ratio reached its most negative point in 2022 at -7.72%. A consistent recovery followed, with the ratio improving to -3.26% in 2023 and -1.37% in 2024. The transition to a positive spread ratio of 1.84% in 2025 confirms a successful turnaround in economic efficiency, indicating that the return on invested capital has finally surpassed the required threshold.
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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 | 4,283) | (2,944) | (6,886) | (16,476) | (6,256) | |
| 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 | 3.45% | -2.37% | -5.63% | -13.64% | -5.37% | |
| Benchmarks | ||||||
| Economic Profit Margin, Competitors3 | ||||||
| Alphabet Inc. | 20.26% | 14.48% | 9.65% | 5.19% | 17.62% | |
| Meta Platforms Inc. | 17.74% | 13.79% | 6.89% | 0.30% | 17.77% | |
| Netflix Inc. | 0.62% | -4.22% | -11.53% | -12.92% | -7.27% | |
| Trade Desk Inc. | 6.56% | -8.10% | -13.35% | -20.56% | -13.61% | |
| Walt Disney Co. | -22.12% | -29.19% | -34.29% | -31.61% | -46.77% | |
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 × 4,283 ÷ 124,253 = 3.45%
3 Click competitor name to see calculations.
The financial trajectory from 2021 to 2025 indicates a significant recovery in economic value creation, culminating in a transition from negative to positive economic profit. While adjusted revenue exhibited steady growth throughout the period, the economic profit margin experienced high volatility before achieving a positive return in the final year of the analysis.
- Adjusted Revenue Trend
- A consistent upward trend in adjusted revenue is observed, increasing from 116,407 million US dollars in 2021 to 124,253 million US dollars by 2025. This growth represents a stable expansion of the top line, providing a consistent base for the improvement in economic performance.
- Economic Profit Performance
- Economic profit exhibited a sharp decline in 2022, reaching a low of negative 16,476 million US dollars. However, a sustained recovery followed, with losses narrowing to negative 6,886 million US dollars in 2023 and negative 2,944 million US dollars in 2024. The trend concluded with a reversal into positive territory in 2025, reaching 4,283 million US dollars.
- Economic Profit Margin Evolution
- The economic profit margin mirrored the volatility of the absolute economic profit. The margin deteriorated from negative 5.37% in 2021 to a peak deficit of negative 13.64% in 2022. Subsequently, the margin improved progressively, reaching negative 5.63% in 2023 and negative 2.37% in 2024, before turning positive at 3.45% in 2025. This progression suggests an increase in capital efficiency and a capacity to generate returns exceeding the cost of capital by the end of the period.
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