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 – 9.45% × 233,085 = 4,508
The economic profit trajectory indicates a period of sustained value destruction followed by a transition toward value creation by the conclusion of the analyzed period. After a significant contraction in 2022, a consistent recovery pattern emerged, culminating in a shift to positive economic profit by 2025.
- Net Operating Profit After Taxes (NOPAT)
- A volatile trend is observed in NOPAT, which decreased sharply from 19,205 million USD in 2021 to 6,839 million USD in 2022. Following this trough, a strong and steady recovery occurred, with NOPAT rising to 16,517 million USD in 2023, 18,803 million USD in 2024, and reaching a period high of 26,540 million USD in 2025.
- Cost of Capital and Invested Capital
- Invested capital exhibited relative stability, decreasing slightly from 229,271 million USD in 2021 to a low of 211,438 million USD in 2023, before increasing to 233,085 million USD by 2025. During the same period, the cost of capital remained stable near 11% until 2023, after which a downward trend was observed, reaching 9.45% in 2025. This reduction in the cost of capital lowered the threshold for achieving economic profitability.
- Economic Profit Transition
- Economic profit remained negative from 2021 through 2024, indicating that operating returns were insufficient to cover the cost of invested capital. The most severe value destruction occurred in 2022, with an economic profit of -16,225 million USD. However, the combination of accelerating NOPAT and a declining cost of capital led to a consistent narrowing of the deficit, resulting in a pivot to a positive economic profit of 4,508 million USD in 2025.
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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$96,903 million, returning to levels comparable to those observed in 2021.
The increase in invested capital in 2025 appears to be driven primarily by the substantial rise in shareholders’ equity, while debt & leases remained relatively constant. The earlier decline in invested capital between 2021 and 2023 was largely attributable to the decrease in shareholders’ equity during that period.
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Cost of Capital
Comcast Corp., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 107,072) | 107,072) | ÷ | 203,468) | = | 0.53 | 0.53 | × | 15.11% | = | 7.95% | ||
| Debt3 | 90,300) | 90,300) | ÷ | 203,468) | = | 0.44 | 0.44 | × | 4.00% × (1 – 21.00%) | = | 1.40% | ||
| Operating lease liability4 | 6,096) | 6,096) | ÷ | 203,468) | = | 0.03 | 0.03 | × | 4.20% × (1 – 21.00%) | = | 0.10% | ||
| Total: | 203,468) | 1.00 | 9.45% | ||||||||||
Based on: 10-K (reporting date: 2025-12-31).
1 US$ 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 | × | 15.11% | = | 8.61% | ||
| 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 | 10.00% | ||||||||||
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 | × | 15.11% | = | 9.85% | ||
| 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 | 10.95% | ||||||||||
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 | × | 15.11% | = | 9.71% | ||
| 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 | 10.81% | ||||||||||
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 | × | 15.11% | = | 9.98% | ||
| 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 | 10.98% | ||||||||||
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 | 4,508) | (2,719) | (6,634) | (16,225) | (5,979) | |
| Invested capital2 | 233,085) | 215,138) | 211,438) | 213,299) | 229,271) | |
| Performance Ratio | ||||||
| Economic spread ratio3 | 1.93% | -1.26% | -3.14% | -7.61% | -2.61% | |
| Benchmarks | ||||||
| Economic Spread Ratio, Competitors4 | ||||||
| Alphabet Inc. | 26.56% | 22.44% | 15.80% | 7.41% | 26.70% | |
| Meta Platforms Inc. | 16.63% | 13.78% | 6.69% | 0.44% | 22.73% | |
| Netflix Inc. | 0.69% | -4.01% | -10.26% | -10.79% | -6.18% | |
| Trade Desk Inc. | 9.12% | -7.93% | -14.59% | -17.25% | -10.44% | |
| Walt Disney Co. | -12.58% | -15.98% | -17.50% | -15.30% | -18.29% | |
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 × 4,508 ÷ 233,085 = 1.93%
4 Click competitor name to see calculations.
The analysis of the company's economic performance from 2021 through 2025 reveals a transition from a period of significant economic value destruction to a state of economic value creation. A notable volatility in economic profit is observed, particularly between 2021 and 2022, followed by a consistent recovery phase that culminates in a positive economic position by the end of the period.
- Economic Spread Ratio
- The economic spread ratio exhibited a sharp decline in 2022, reaching a low of -7.61%. This indicates a substantial gap where the return on invested capital failed to meet the required cost of capital. However, a progressive recovery is evident from 2023 onwards, with the ratio improving to -3.14% in 2023 and -1.26% in 2024. By December 31, 2025, the ratio turned positive at 1.93%, signaling that the company has begun generating returns in excess of its cost of capital.
- Economic Profit
- Economic profit mirrored the trajectory of the spread ratio, experiencing a severe contraction in 2022 with a loss of 16,225 million US dollars. A steady upward trend followed, reducing losses to 6,634 million US dollars in 2023 and 2,719 million US dollars in 2024. The trend shifted to positive territory in 2025, with an economic profit of 4,508 million US dollars, representing a full reversal of the previous losses.
- Invested Capital
- Invested capital remained relatively stable throughout the analyzed period. A slight decrease was noted between 2021 and 2023, moving from 229,271 million US dollars to 211,438 million US dollars. This was followed by an expansion in the capital base, rising to 233,085 million US dollars by 2025. The fact that economic profit improved while invested capital increased in the final two years suggests that the gains were driven by increased operational efficiency and higher returns rather than a reduction in the capital employed.
Overall, the financial trajectory indicates a successful turnaround in economic efficiency. The progression from a deep negative spread in 2022 to a positive spread in 2025 demonstrates an improved ability to generate value above the cost of funding the invested capital base.
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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 | 4,508) | (2,719) | (6,634) | (16,225) | (5,979) | |
| 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 | 3.63% | -2.19% | -5.42% | -13.43% | -5.14% | |
| Benchmarks | ||||||
| Economic Profit Margin, Competitors3 | ||||||
| Alphabet Inc. | 20.36% | 14.57% | 9.74% | 5.29% | 17.71% | |
| Meta Platforms Inc. | 17.86% | 13.90% | 7.00% | 0.39% | 17.85% | |
| Netflix Inc. | 0.66% | -4.18% | -11.48% | -12.87% | -7.22% | |
| Trade Desk Inc. | 6.66% | -7.96% | -13.23% | -20.40% | -13.43% | |
| Walt Disney Co. | -22.01% | -29.08% | -34.17% | -31.49% | -46.61% | |
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 × 4,508 ÷ 124,253 = 3.63%
3 Click competitor name to see calculations.
The financial performance between 2021 and 2025 is characterized by a significant recovery in economic value generation, culminating in a transition from value destruction to value creation.
- Economic Profit Trends
- Economic profit exhibited substantial volatility during the analyzed period, beginning at -5,979 million USD in 2021 and reaching a nadir of -16,225 million USD in 2022. A consistent recovery followed this decline, with losses narrowing to -6,634 million USD in 2023 and -2,719 million USD in 2024, before shifting to a positive value of 4,508 million USD by December 31, 2025.
- Adjusted Revenue Performance
- Adjusted revenue demonstrated a steady and incremental upward trajectory. Figures rose from 116,407 million USD in 2021 to 124,253 million USD in 2025. This consistent top-line growth occurred independently of the fluctuations observed in economic profit, suggesting a stable expansion of the revenue base.
- Economic Profit Margin Analysis
- The economic profit margin mirrored the trajectory of absolute economic profit. A sharp contraction is observed between 2021 and 2022, where the margin dropped from -5.14% to -13.43%. Following this low point, a sustained recovery trend emerged, with the margin improving to -5.42% in 2023 and -2.19% in 2024. The period concluded with the margin reaching a positive 3.63% in 2025.
The shift from a negative to a positive economic profit margin, coupled with steady revenue growth, indicates that the entity successfully optimized its returns relative to its cost of capital. The transition to a positive margin in 2025 signifies that the business began generating returns in excess of its required capital charge, thereby creating economic value.
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