Stock Analysis on Net

Comcast Corp. (NASDAQ:CMCSA)

Economic Value Added (EVA)

Microsoft Excel

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

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net operating profit after taxes (NOPAT)1 18,803 16,517 6,839 19,205 14,617
Cost of capital2 9.71% 10.61% 10.48% 10.64% 10.43%
Invested capital3 215,148 211,709 213,605 229,233 224,149
 
Economic profit4 (2,089) (5,953) (15,551) (5,195) (8,772)

Based on: 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), 10-K (reporting date: 2020-12-31).

1 NOPAT. See details »

2 Cost of capital. See details »

3 Invested capital. See details »

4 2024 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 18,8039.71% × 215,148 = -2,089

Item Description The company
Economic profit Economic profit is a measure of corporate performance computed by taking the spread between the return on invested capital and the cost of capital, and multiplying by the invested capital. Comcast Corp. economic profit increased from 2022 to 2023 and from 2023 to 2024.

Net Operating Profit after Taxes (NOPAT)

Comcast Corp., NOPAT calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income attributable to Comcast Corporation 16,192 15,388 5,370 14,159 10,534
Deferred income tax expense (benefit)1 (902) (2,739) (834) 1,892 (550)
Increase (decrease) in allowance for credit losses2 40 (38) 77 (149) 388
Increase (decrease) in deferred revenue3 312 745 (620) 22 327
Increase (decrease) in equity equivalents4 (550) (2,032) (1,377) 1,765 165
Interest expense 4,134 4,087 3,896 4,281 4,588
Interest expense, operating lease liability5 265 270 269 285 160
Adjusted interest expense 4,399 4,357 4,165 4,566 4,748
Tax benefit of interest expense6 (924) (915) (875) (959) (997)
Adjusted interest expense, after taxes7 3,476 3,442 3,291 3,607 3,751
Net income (loss) attributable to noncontrolling interest (315) (281) (445) (326) 167
Net operating profit after taxes (NOPAT) 18,803 16,517 6,839 19,205 14,617

Based on: 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), 10-K (reporting date: 2020-12-31).

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 2024 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 6,320 × 4.20% = 265

6 2024 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 4,399 × 21.00% = 924

7 Addition of after taxes interest expense to net income attributable to Comcast Corporation.

Item Description The company
NOPAT Net operating profit after taxes is income from operations, but after removement of taxes calculated on cash basis that are relevant to operating income. Comcast Corp. NOPAT increased from 2022 to 2023 and from 2023 to 2024.

Cash Operating Taxes

Comcast Corp., cash operating taxes calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Income tax expense 2,796 5,371 4,359 5,259 3,364
Less: Deferred income tax expense (benefit) (902) (2,739) (834) 1,892 (550)
Add: Tax savings from interest expense 924 915 875 959 997
Cash operating taxes 4,622 9,025 6,068 4,326 4,911

Based on: 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), 10-K (reporting date: 2020-12-31).

Item Description The company
Cash operating taxes Cash operating taxes are estimated by adjusting income tax expense for changes in deferred taxes and tax benefit from the interest deduction. Comcast Corp. cash operating taxes increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Invested Capital

Comcast Corp., invested capital calculation (financing approach)

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Current portion of debt 4,907 2,069 1,743 2,132 3,146
Noncurrent portion of debt 94,186 95,021 93,068 92,718 100,614
Operating lease liability1 6,320 6,586 6,782 7,239 4,458
Total reported debt & leases 105,413 103,676 101,593 102,089 108,218
Total Comcast Corporation shareholders’ equity 85,560 82,703 80,943 96,092 90,323
Net deferred tax (assets) liabilities2 25,118 25,894 28,509 29,759 27,832
Allowance for credit losses3 738 698 735 658 807
Deferred revenue4 4,172 3,860 3,115 3,735 3,713
Equity equivalents5 30,028 30,452 32,359 34,152 32,352
Accumulated other comprehensive (income) loss, net of tax6 2,043 1,253 2,611 (1,480) (1,884)
Redeemable noncontrolling interests 237 241 411 519 1,280
Noncontrolling interests 478 523 684 1,398 1,415
Adjusted total Comcast Corporation shareholders’ equity 118,346 115,172 117,008 130,681 123,486
Construction in process7 (8,600) (7,100) (4,900) (3,131) (7,095)
Marketable equity securities8 (11) (39) (96) (406) (460)
Invested capital 215,148 211,709 213,605 229,233 224,149

Based on: 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), 10-K (reporting date: 2020-12-31).

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 marketable equity securities.

Item Description The company
Invested capital Capital is an approximation of the economic book value of all cash invested in going-concern business activities. Comcast Corp. invested capital decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Cost of Capital

Comcast Corp., cost of capital calculations

Capital (fair value)1 Weights Cost of capital
Equity2 127,269 127,269 ÷ 223,389 = 0.57 0.57 × 14.59% = 8.31%
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 9.71%

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 × 14.59% = 9.51%
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 10.61%

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 × 14.59% = 9.38%
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 10.48%

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 × 14.59% = 9.64%
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 10.64%

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 »

Capital (fair value)1 Weights Cost of capital
Equity2 235,675 235,675 ÷ 365,733 = 0.64 0.64 × 14.59% = 9.40%
Debt3 125,600 125,600 ÷ 365,733 = 0.34 0.34 × 3.67% × (1 – 21.00%) = 1.00%
Operating lease liability4 4,458 4,458 ÷ 365,733 = 0.01 0.01 × 3.58% × (1 – 21.00%) = 0.03%
Total: 365,733 1.00 10.43%

Based on: 10-K (reporting date: 2020-12-31).

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

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Economic profit1 (2,089) (5,953) (15,551) (5,195) (8,772)
Invested capital2 215,148 211,709 213,605 229,233 224,149
Performance Ratio
Economic spread ratio3 -0.97% -2.81% -7.28% -2.27% -3.91%
Benchmarks
Economic Spread Ratio, Competitors4
Alphabet Inc. 26.76% 20.10% 11.70% 31.01% 14.01%
Meta Platforms Inc. 18.28% 11.18% 4.84% 27.25% 18.45%
Netflix Inc. 4.73% -1.74% -2.51% 1.96% -3.47%
Walt Disney Co. -10.99% -12.60% -10.45% -13.27% -15.54%

Based on: 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), 10-K (reporting date: 2020-12-31).

1 Economic profit. See details »

2 Invested capital. See details »

3 2024 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -2,089 ÷ 215,148 = -0.97%

4 Click competitor name to see calculations.

Performance ratio Description The company
Economic spread ratio The ratio of economic profit to invested capital, also equal to the difference between return on invested capital (ROIC) and cost of capital. Comcast Corp. economic spread ratio improved from 2022 to 2023 and from 2023 to 2024.

Economic Profit Margin

Comcast Corp., economic profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Economic profit1 (2,089) (5,953) (15,551) (5,195) (8,772)
 
Revenue 123,731 121,572 121,427 116,385 103,564
Add: Increase (decrease) in deferred revenue 312 745 (620) 22 327
Adjusted revenue 124,043 122,317 120,807 116,407 103,891
Performance Ratio
Economic profit margin2 -1.68% -4.87% -12.87% -4.46% -8.44%
Benchmarks
Economic Profit Margin, Competitors3
Alphabet Inc. 17.38% 12.39% 8.35% 20.57% 11.15%
Meta Platforms Inc. 18.43% 11.70% 4.22% 21.41% 17.36%
Netflix Inc. 4.93% -1.94% -2.99% 2.29% -4.10%
Walt Disney Co. -19.99% -24.60% -21.51% -33.82% -41.78%

Based on: 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), 10-K (reporting date: 2020-12-31).

1 Economic profit. See details »

2 2024 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted revenue
= 100 × -2,089 ÷ 124,043 = -1.68%

3 Click competitor name to see calculations.

Performance ratio Description The company
Economic profit margin The ratio of economic profit to sales. It is the company profit margin covering income efficiency and asset management. Economic profit margin is not biased in favor of capital-intensive business models, because any added capital is a cost to the economic profit margin. Comcast Corp. economic profit margin improved from 2022 to 2023 and from 2023 to 2024.