Stock Analysis on Net

Comcast Corp. (NASDAQ:CMCSA)

$24.99

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.

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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
Cost of capital2
Invested capital3
 
Economic profit4

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
= × =


Net operating profit after taxes (NOPAT)
The NOPAT experienced fluctuations over the five-year period. It rose from 14,617 million USD in 2020 to a peak of 19,205 million USD in 2021. However, there was a significant decline in 2022, dropping to 6,839 million USD. This was followed by a rebound in subsequent years, reaching 16,517 million USD in 2023 and further increasing to 18,803 million USD in 2024, almost recovering to the 2021 peak level.
Cost of capital
The cost of capital showed relatively minor variation, starting at 10.62% in 2020 and slightly increasing to 10.83% in 2021. It then slightly decreased to 10.67% in 2022 and rebounded modestly to 10.8% in 2023. In 2024, there was a noticeable reduction to 9.87%, indicating a lower hurdle rate or required return on invested capital in the most recent year.
Invested capital
Invested capital slightly increased from 224,149 million USD in 2020 to 229,233 million USD in 2021, followed by a decrease to 213,605 million USD in 2022. It maintained a relatively stable level in 2023 at 211,709 million USD, then moderately increased again to 215,148 million USD in 2024. Overall, this indicates a contraction in the capital base around 2022 and 2023 relative to earlier years, with a recovery trend in 2024.
Economic profit
Economic profit was negative throughout the entire period, indicating that the returns did not exceed the cost of capital. The loss narrowed slightly from -9,185 million USD in 2020 to -5,628 million USD in 2021. However, a sharp deterioration occurred in 2022, with economic profit plunging to -15,943 million USD. Improvement followed in 2023 (-6,347 million USD) and further in 2024 (-2,439 million USD), but the values remained negative, reflecting persistent challenges in generating returns above capital costs.
Overall Analysis
The financial data presents a cyclical pattern with a significant downturn in 2022 impacting net operating profit and economic profit severely. Despite the recovery in profitability in 2023 and 2024, the persistent negative economic profit suggests that the company struggled to generate value over and above its cost of capital throughout the period. The reduction in the cost of capital in 2024 may indicate improved market conditions or risk profile, aiding profitability recovery. The invested capital trends reinforce a cautious approach to capital deployment with reductions occurring in the low-performance period and a measured increase during recovery.

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
Deferred income tax expense (benefit)1
Increase (decrease) in allowance for credit losses2
Increase (decrease) in deferred revenue3
Increase (decrease) in equity equivalents4
Interest expense
Interest expense, operating lease liability5
Adjusted interest expense
Tax benefit of interest expense6
Adjusted interest expense, after taxes7
Net income (loss) attributable to noncontrolling interest
Net operating profit after taxes (NOPAT)

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 2024 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= × 21.00% =

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


The financial data reveals notable fluctuations and a generally positive trend in profitability over the five-year period.

Net Income Attributable to Comcast Corporation
The net income increased significantly from 10,534 million US dollars in 2020 to 14,159 million US dollars in 2021, indicating a strong growth phase. However, there was a sharp decline in 2022 to 5,370 million US dollars, representing a substantial decrease from the previous year. This drop was followed by a robust recovery in 2023, with net income rising to 15,388 million US dollars, surpassing earlier levels. The upward trend continued in 2024 with net income further increasing to 16,192 million US dollars, reaching the highest point in the five-year span.
Net Operating Profit After Taxes (NOPAT)
NOPAT exhibited a similar pattern to net income. It increased from 14,617 million US dollars in 2020 to 19,205 million US dollars in 2021, reflecting improved operational profitability. In 2022, NOPAT dropped sharply to 6,839 million US dollars, mirroring the decline seen in net income. Following the decline, NOPAT rose again to 16,517 million US dollars in 2023, nearly returning to its previous peak. This increase continued into 2024, reaching 18,803 million US dollars, indicating strengthened operational efficiency and profitability.

Overall, the data shows a period of growth through 2021, followed by a significant contraction in 2022. The company demonstrated resilience with a strong recovery in 2023 and further improvement in 2024. Both net income and NOPAT followed consistent trends, suggesting that the fluctuations in net income were largely driven by changes in operational performance. The recovery and subsequent growth imply effective management responses to the downturn experienced in 2022.


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
Less: Deferred income tax expense (benefit)
Add: Tax savings from interest expense
Cash operating taxes

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).


The financial data over the five-year period reveals fluctuations in both income tax expense and cash operating taxes. Income tax expense exhibited a rising trend from 2020 through 2021, increasing significantly from 3,364 million USD to 5,259 million USD. In 2022, there was a decline to 4,359 million USD, followed by a rebound to 5,371 million USD in 2023. The most recent figure for 2024 shows a pronounced reduction to 2,796 million USD, representing the lowest value in the five-year span.

Cash operating taxes present a less consistent pattern. There was an initial decrease from 4,911 million USD in 2020 to 4,326 million USD in 2021. However, this was followed by a sharp increase in 2022 to 6,068 million USD, and a further substantial rise in 2023, reaching 9,025 million USD. In 2024, cash operating taxes dropped significantly to 4,622 million USD, nearing the levels observed at the start of the period.

Income Tax Expense Trends
Overall, income tax expenses experienced volatility with peaks in 2021 and 2023, and a notable trough in 2024, indicating possible changes in taxable income, tax rates, or deductions impacting the tax burden.
Cash Operating Taxes Trends
The pattern suggests variability with a dip in 2021, followed by two consecutive years of sharp increases and a steep decline in 2024. This could reflect fluctuations in operating profits, changes in tax regulations, or timing differences in tax payments.
Comparative Insights
Both tax-related measures show significant increases in 2023 followed by reductions in 2024, possibly indicating strategic tax planning or extraordinary items affecting tax calculations in those years. The divergence in 2022 and 2023, where cash operating taxes increased sharply yet income tax expense moved relatively moderately, might point to differences between tax liability and cash tax payments during the periods.

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
Noncurrent portion of debt
Operating lease liability1
Total reported debt & leases
Total Comcast Corporation shareholders’ equity
Net deferred tax (assets) liabilities2
Allowance for credit losses3
Deferred revenue4
Equity equivalents5
Accumulated other comprehensive (income) loss, net of tax6
Redeemable noncontrolling interests
Noncontrolling interests
Adjusted total Comcast Corporation shareholders’ equity
Construction in process7
Marketable equity securities8
Invested capital

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.


The financial data presents trends across a five-year period from 2020 to 2024 for key balance sheet items related to debt, equity, and invested capital.

Total reported debt & leases
The total reported debt and leases showed a decreasing trend from 2020 to 2022, falling from 108,218 million US dollars to 101,593 million US dollars. However, from 2022 onwards, there was a gradual increase, reaching 105,413 million US dollars by the end of 2024. This indicates some degree of deleveraging followed by a moderate uptrend in debt levels, suggesting a cautious approach to leverage after a period of reduction.
Total Comcast Corporation shareholders’ equity
Shareholders’ equity increased from 90,323 million US dollars in 2020 to a peak of 96,092 million US dollars in 2021. Following this peak, there was a sharp decline to 80,943 million US dollars in 2022. Equity subsequently experienced a mild recovery, increasing to 85,560 million US dollars by 2024. This pattern suggests significant changes in retained earnings or other comprehensive income components during 2022, possibly reflecting impactful operational results or adjustments, with partial restoration of equity in later years.
Invested capital
Invested capital increased slightly from 224,149 million US dollars in 2020 to 229,233 million US dollars in 2021, then declined steadily to 213,605 million US dollars in 2022 and further to 211,709 million US dollars in 2023. A slight recovery was observed in 2024, with invested capital increasing to 215,148 million US dollars. The overall trend points to a cautious reduction in invested capital post-2021, with a minor resurgence in the most recent year.

In summary, the period is characterized by an initial improvement in equity and invested capital until 2021, followed by a notable decrease in equity and invested capital in 2022, coinciding with the lowest debt level in the analyzed timeframe. The subsequent years show moderate recovery in equity and invested capital alongside a gradual increase in debt levels, indicating strategic adjustments in financial structure after a phase of deleveraging and equity decline.


Cost of Capital

Comcast Corp., cost of capital calculations

Capital (fair value)1 Weights Cost of capital
Equity2 ÷ = × =
Debt3 ÷ = × × (1 – 21.00%) =
Operating lease liability4 ÷ = × × (1 – 21.00%) =
Total:

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 ÷ = × =
Debt3 ÷ = × × (1 – 21.00%) =
Operating lease liability4 ÷ = × × (1 – 21.00%) =
Total:

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 ÷ = × =
Debt3 ÷ = × × (1 – 21.00%) =
Operating lease liability4 ÷ = × × (1 – 21.00%) =
Total:

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 ÷ = × =
Debt3 ÷ = × × (1 – 21.00%) =
Operating lease liability4 ÷ = × × (1 – 21.00%) =
Total:

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 ÷ = × =
Debt3 ÷ = × × (1 – 21.00%) =
Operating lease liability4 ÷ = × × (1 – 21.00%) =
Total:

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
Invested capital2
Performance Ratio
Economic spread ratio3
Benchmarks
Economic Spread Ratio, Competitors4
Alphabet Inc.
Meta Platforms Inc.
Netflix Inc.
Take-Two Interactive Software Inc.
Walt Disney Co.

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 × ÷ =

4 Click competitor name to see calculations.


Economic Profit
The economic profit displayed significant volatility over the observed period. It was negative throughout, indicating consistent economic losses. The figure improved from -9,185 million US dollars in 2020 to -5,628 million in 2021, reflecting a reduction in losses. However, the trend reversed in 2022 with a substantial decline to -15,943 million, the worst point in the series. Subsequently, the losses decreased in 2023 and 2024 to -6,347 million and -2,439 million, respectively, showing a recovery tendency but remaining negative overall.
Invested Capital
The invested capital remained relatively stable with minor fluctuations over the five years. It increased slightly from 224,149 million US dollars in 2020 to a peak of 229,233 million in 2021. Thereafter, it decreased to 213,605 million in 2022 and further to 211,709 million in 2023. In 2024, there was a small uptick to 215,148 million, indicating a marginal recovery after the downward trend.
Economic Spread Ratio
The economic spread ratio was negative throughout the period, reflecting returns on invested capital below the cost of capital. It improved from -4.1% in 2020 to -2.46% in 2021, suggesting better capital efficiency or cost management. Nonetheless, it deteriorated sharply in 2022 to -7.46%, aligning with the severe drop in economic profit. Following this downturn, the ratio improved again to -3.0% in 2023 and further to -1.13% in 2024, indicating a trend toward reducing the gap between returns and capital costs.
Overall Analysis
The data depict a company facing consistent economic losses from 2020 to 2024, with a pronounced setback in 2022. The invested capital remained relatively stable, suggesting limited changes in asset investment or financing. The economic spread ratio’s negative values throughout the period confirm that the company’s return on invested capital has been insufficient to cover its cost of capital. The improvement in economic profit and spread ratio after 2022 indicates some recovery efforts or operational enhancements, though the results remain below breakeven levels.

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
 
Revenue
Add: Increase (decrease) in deferred revenue
Adjusted revenue
Performance Ratio
Economic profit margin2
Benchmarks
Economic Profit Margin, Competitors3
Alphabet Inc.
Meta Platforms Inc.
Netflix Inc.
Take-Two Interactive Software Inc.
Walt Disney Co.

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 × ÷ =

3 Click competitor name to see calculations.


Adjusted Revenue
The adjusted revenue demonstrates a consistent upward trend over the five-year period. Starting at 103,891 million US dollars in 2020, revenue increased annually, reaching 124,043 million US dollars by 2024. This represents a steady growth pattern, with no declines observed in any year.
Economic Profit
Economic profit exhibits significant volatility. While remaining negative throughout the period, the magnitude of losses fluctuates notably. The largest loss occurred in 2022 at -15,943 million US dollars. After this peak loss, the amount of economic profit loss reduced substantially in the subsequent years, reaching -2,439 million US dollars in 2024. Despite continuous losses, the trend suggests an overall improvement in economic profitability in the latter years.
Economic Profit Margin
The economic profit margin mirrors the pattern seen in economic profit. Beginning at -8.84% in 2020, the margin improved to -4.83% in 2021, then deteriorated sharply to -13.2% in 2022. Following this, the profit margin improved again, reaching -1.97% in 2024. This indicates that while the firm has recurrently experienced negative economic profitability, the severity decreased markedly towards the end of the period.
Overall Observations
Despite increasing revenues year over year, the entity has consistently operated at an economic loss. However, the losses appear to be diminishing after a peak deterioration in 2022. The improvement in economic profit and its margin from 2023 to 2024 suggests potential progress in managing costs or improving operational efficiency. The upward revenue trend paired with decreasing losses could indicate the company is moving towards economic profitability in the near future if current trends continue.