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.
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- Statement of Comprehensive Income
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Return on Equity (ROE) since 2019
- Return on Assets (ROA) since 2019
- Total Asset Turnover since 2019
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Economic Profit
Datadog Inc., economic profit calculation
US$ in thousands
| 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)
Datadog Inc., NOPAT calculation
US$ in thousands
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 (loss).
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 (loss).
8 2024 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= × 21.00% =
9 Elimination of after taxes investment income.
- Net Income (Loss)
- The net income showed a substantial shift over the five-year period. Initially, the company experienced losses in 2020, 2021, and 2022, with the loss deepening significantly in 2022 to -50,160 thousand US dollars. However, a marked turnaround occurred in 2023, when net income became positive, reaching 48,568 thousand US dollars. This positive trajectory continued into 2024 with a substantial increase to 183,746 thousand US dollars, indicating strong profitability growth.
- Net Operating Profit After Taxes (NOPAT)
- NOPAT displays a consistent upward trend throughout the years analyzed. Starting at 56,642 thousand US dollars in 2020, it nearly tripled in 2021 to 159,659 thousand US dollars. Although there was a slight decline in 2022 to 111,620 thousand US dollars, the metric rebounded significantly in 2023 and 2024, reaching 215,965 and 278,126 thousand US dollars, respectively. This steady increase suggests improved operating efficiency and profitability after tax expenses over the observed period.
- Overall Financial Performance
- The data reveals that the company transitioned from operating losses toward significant profitability, as evidenced by both net income and NOPAT figures. Despite the net income volatility in the initial years, the sustained growth in NOPAT indicates underlying operational strength. The large positive net income in the last two reported periods complements this, reflecting improved financial management, higher revenues, or better cost control leading to enhanced shareholder value.
Cash Operating Taxes
Datadog Inc., cash operating taxes calculation
US$ in thousands
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 reveals significant fluctuations in both income taxes allocated to operations and cash operating taxes over the five-year period. The data indicates evolving patterns that may reflect changes in the company's tax planning, profitability, or operational performance.
- Income Taxes Allocated to Operations
- This item shows a general upward trend from 2020 through 2024. Starting at 2,325 thousand US dollars in 2020, the amount remained almost flat in 2021 with a negligible decline. However, there was a marked increase in 2022, more than doubling to 12,090 thousand US dollars. Following a slight decrease in 2023 to 11,667 thousand US dollars, the figure surged again in 2024, reaching 20,194 thousand US dollars, the highest level recorded in the period under review. This pattern suggests increasing taxable income or changes in tax allocation policies leading to higher operational income tax expenses.
- Cash Operating Taxes
- The cash operating taxes reveal a more volatile pattern compared to income taxes allocated to operations. Beginning at 4,965 thousand US dollars in 2020, the figure dropped significantly to 2,982 thousand US dollars in 2021. It then rebounded sharply in 2022 to 9,682 thousand US dollars. Notably, there was a drastic decline into negative territory for both 2023 (-5,834 thousand US dollars) and 2024 (-5,321 thousand US dollars). These negative values may indicate tax refunds, credits, or adjustments rather than traditional tax outflows, pointing to potential changes in tax payments, deferrals, or rebates during the latter years.
Overall, the increase in income taxes allocated to operations contrasts with the increasingly negative cash operating taxes in the most recent years. This divergence may suggest complexities in the timing of tax obligations and cash tax payments or reflect strategic tax management efforts impacting the cash flow related to taxes. The volatility observed in cash operating taxes warrants closer examination to understand underlying causes such as tax authority adjustments, changes in effective tax rates, or alterations in the company's tax position.
Invested Capital
Datadog Inc., invested capital calculation (financing approach)
US$ in thousands
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 stockholders’ equity.
6 Removal of accumulated other comprehensive income.
7 Subtraction of marketable securities.
- Total Reported Debt & Leases
- The total reported debt and leases exhibit a consistent upward trajectory over the five-year period. Starting at 643,623 thousand USD in 2020, the figure increased to 807,745 thousand USD in 2021, representing a significant rise. The upward trend persisted through 2022 and 2023, reaching 902,337 thousand USD. A pronounced surge is observed in 2024, with the debt more than doubling to 1,842,180 thousand USD. This sharp increase in the final year suggests a substantial increase in leverage or financing activities.
- Stockholders’ Equity
- Stockholders' equity has demonstrated strong growth throughout the period. Beginning at 957,432 thousand USD in 2020, equity increased steadily each year, reaching 1,041,203 thousand USD in 2021, and then expanding more rapidly to 1,410,505 thousand USD in 2022. The growth accelerated further in subsequent years, climbing to 2,025,354 thousand USD in 2023 and 2,714,363 thousand USD in 2024. This consistent increase indicates a strengthening capital base and retained earnings growth.
- Invested Capital
- Invested capital, the sum reflecting the total funds invested by shareholders and debt holders, follows an increasing trend similar to equity and debt metrics. Starting at 516,941 thousand USD in 2020, it rose sharply to 958,101 thousand USD in 2021. This upward momentum sustained through 2022 and 2023, with figures of 1,276,252 thousand USD and 1,475,035 thousand USD, respectively. By 2024, invested capital experienced a marked increase, reaching 2,616,203 thousand USD. This growth aligns with the increases in both equity and debt, suggesting expanded operational investment or asset acquisition.
Cost of Capital
Datadog Inc., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Convertible senior notes3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2024-12-31).
1 US$ in thousands
2 Equity. See details »
3 Convertible senior notes. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Convertible senior notes3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2023-12-31).
1 US$ in thousands
2 Equity. See details »
3 Convertible senior notes. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Convertible senior notes3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2022-12-31).
1 US$ in thousands
2 Equity. See details »
3 Convertible senior notes. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Convertible senior notes3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2021-12-31).
1 US$ in thousands
2 Equity. See details »
3 Convertible senior notes. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Convertible senior notes3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2020-12-31).
1 US$ in thousands
2 Equity. See details »
3 Convertible senior notes. See details »
4 Operating lease liability. See details »
Economic Spread Ratio
Datadog Inc., economic spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Economic profit1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| Economic spread ratio3 | ||||||
| Benchmarks | ||||||
| Economic Spread Ratio, Competitors4 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| International Business Machines Corp. | ||||||
| Intuit Inc. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| Palantir Technologies Inc. | ||||||
| Palo Alto Networks Inc. | ||||||
| Salesforce Inc. | ||||||
| ServiceNow Inc. | ||||||
| Synopsys Inc. | ||||||
| Workday Inc. | ||||||
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 Margin
Datadog Inc., economic profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Economic profit1 | ||||||
| Revenue | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted revenue | ||||||
| Performance Ratio | ||||||
| Economic profit margin2 | ||||||
| Benchmarks | ||||||
| Economic Profit Margin, Competitors3 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| International Business Machines Corp. | ||||||
| Intuit Inc. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| Palantir Technologies Inc. | ||||||
| Palo Alto Networks Inc. | ||||||
| Salesforce Inc. | ||||||
| ServiceNow Inc. | ||||||
| Synopsys Inc. | ||||||
| Workday Inc. | ||||||
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.