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
Intel Corp., economic profit calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
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
= 577 – 19.22% × 116,604 = -21,836
The financial trajectory from 2021 to 2025 indicates a transition from positive economic value creation to a period of significant value destruction. While the organization began the period with a positive economic profit, a sharp decline in operational profitability combined with an expanding capital base resulted in widening economic losses, peaking in 2024 before a marginal recovery in 2025.
- Net Operating Profit After Taxes (NOPAT)
- A severe downward trend is observed in NOPAT, which plummeted from 19,493 million US$ in 2021 to a peak deficit of 13,095 million US$ in 2024. This collapse in operating performance represents the primary driver of the erosion in economic profit. Although a return to positive territory was achieved in 2025 with a NOPAT of 577 million US$, this recovery is minimal compared to the baseline levels established in 2021.
- Invested Capital and Cost of Capital
- Invested capital exhibited a consistent upward trend, growing from 88,498 million US$ in 2021 to 116,604 million US$ by 2025, with the most substantial increase occurring in the final year. Concurrently, the cost of capital remained volatile, fluctuating between a low of 15.86% in 2024 and a high of 19.22% in 2025. The combination of increasing capital intensity and a high cost of capital created a substantial financial hurdle that operating profits failed to meet for four consecutive years.
- Economic Profit Analysis
- Economic profit shifted from a surplus of 3,041 million US$ in 2021 to deep deficits, reaching a maximum loss of 27,735 million US$ in 2024. The data reveals that the company entered a state of value destruction starting in 2022, where the return on invested capital fell well below the cost of capital. Despite the modest recovery in NOPAT in 2025, the expanded capital base of 116,604 million US$ and the increase in the cost of capital to 19.22% ensured that the economic profit remained heavily negative at 21,836 million US$.
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Net Operating Profit after Taxes (NOPAT)
Intel Corp., NOPAT calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
1 Elimination of deferred tax expense. See details »
2 Addition of increase (decrease) in accrued restructuring balance.
3 Addition of increase (decrease) in equity equivalents to net income (loss) attributable to Intel.
4 2025 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 391 × 4.70% = 18
5 2025 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 1,109 × 21.00% = 233
6 Addition of after taxes interest expense to net income (loss) attributable to Intel.
7 2025 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 1,007 × 21.00% = 211
8 Elimination of after taxes investment income.
The financial performance, as indicated by Net Income and Net Operating Profit After Taxes (NOPAT), demonstrates significant volatility over the five-year period. A marked decline in profitability is evident, particularly in the latter years of the observed timeframe.
- Net Operating Profit After Taxes (NOPAT)
- NOPAT began at US$19,493 million in 2021. A substantial decrease was observed in 2022, falling to US$3,672 million. This downward trend continued into 2023, with NOPAT becoming negative at -US$1,469 million. The decline accelerated in 2024, reaching a low of -US$13,095 million. A modest recovery is indicated in 2025, with NOPAT reported at US$577 million, though still significantly below the 2021 level.
The trajectory of NOPAT closely mirrors the trend in Net Income attributable to Intel, although the magnitudes of the changes differ. Both metrics show a strong negative correlation, suggesting that changes in operational profitability are a primary driver of overall net income fluctuations. The substantial losses in 2024 represent a significant shift in financial performance, followed by a limited positive adjustment in 2025.
- Relationship between Net Income and NOPAT
- While both metrics initially show positive values, they both experience a significant downturn. The negative NOPAT values in 2023, 2024, and to a lesser extent 2025, indicate that the company’s operating profits are insufficient to cover its after-tax cost of capital during those periods. The return to positive NOPAT in 2025, albeit small, suggests a potential stabilization or early stage of recovery.
The considerable fluctuations in NOPAT warrant further investigation to determine the underlying causes, such as changes in revenue, operating expenses, tax rates, or capital structure. The shift from substantial profitability in 2021 to significant losses in 2024 represents a critical period requiring detailed analysis.
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Cash Operating Taxes
Intel Corp., cash operating taxes calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
The provision for taxes exhibits significant volatility over the observed period. Initially positive in 2021, it transitioned to negative values in both 2022 and 2023 before becoming substantially positive in 2024 and moderating in 2025. Conversely, cash operating taxes demonstrate a more consistent, though fluctuating, pattern. A notable increase is observed from 2021 to 2022, followed by a substantial decrease in 2023, and a subsequent rise in 2024, before declining again in 2025.
- Provision for Taxes Trend
- In 2021, a provision for taxes of US$1,835 million was recorded. This shifted dramatically to a benefit of US$249 million in 2022, and further to a benefit of US$913 million in 2023. A significant reversal occurred in 2024, with a provision of US$8,023 million, followed by a decrease to US$1,531 million in 2025. This pattern suggests considerable fluctuations in taxable income or the utilization of tax loss carryforwards or credits.
- Cash Operating Taxes Trend
- Cash operating taxes increased from US$2,675 million in 2021 to US$4,893 million in 2022. A substantial decline was then recorded in 2023, falling to US$1,005 million. These taxes increased again in 2024 to US$1,916 million, before decreasing to US$1,223 million in 2025. The changes in cash taxes do not directly correlate with the provision for taxes, indicating potential timing differences between book and tax accounting.
- Relationship between Provision and Cash Taxes
- The divergence between the provision for taxes and cash operating taxes is particularly pronounced in 2022 and 2023. The benefit recorded in the provision for taxes during these years, coupled with relatively high cash taxes in 2022, suggests deferred tax assets may have been impacted. The large provision in 2024, alongside lower cash taxes, could indicate the reversal of these deferred tax assets or a change in taxable income.
The observed patterns suggest a complex tax position, potentially influenced by factors such as changes in tax laws, jurisdictional mix of income, and the utilization of tax planning strategies. Further investigation into the underlying drivers of these fluctuations would be necessary to fully understand the implications for economic value added.
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Invested Capital
Intel Corp., invested capital calculation (financing approach)
US$ in millions
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
1 Addition of capitalized operating leases.
2 Elimination of deferred taxes from assets and liabilities. See details »
3 Addition of accrued restructuring balance.
4 Addition of equity equivalents to total Intel stockholders’ equity.
5 Removal of accumulated other comprehensive income.
6 Subtraction of construction in progress.
7 Subtraction of marketable securities.
The reported invested capital demonstrates a generally increasing trend over the five-year period, although with some fluctuation. Total reported debt & leases and total stockholders’ equity contribute to this figure, and their individual movements influence the overall invested capital value.
- Invested Capital Trend
- Invested capital remained relatively stable between 2021 and 2022, at approximately US$88.5 billion. A moderate increase was observed in 2023, reaching US$92.1 billion, and continued into 2024, reaching US$92.3 billion. A significant increase is then apparent in 2025, with invested capital rising to US$116.6 billion. This substantial growth in the final year suggests a considerable expansion in the company’s capital base.
- Debt & Leases
- Total reported debt & leases exhibited an upward trend from 2021 to 2023, increasing from US$38.6 billion to US$49.7 billion. The rate of increase slowed in 2024, with a marginal rise to US$50.5 billion, followed by a decrease in 2025 to US$47.0 billion. This suggests a period of increased borrowing followed by stabilization and then a reduction in debt obligations.
- Stockholders’ Equity
- Total stockholders’ equity generally increased throughout the period. It rose from US$95.4 billion in 2021 to US$105.6 billion in 2023. A slight decrease was noted in 2024, falling to US$99.3 billion, before a substantial increase to US$114.3 billion in 2025. This indicates growing shareholder investment and retained earnings, with a temporary dip before a significant rebound.
The combined effect of these movements in debt and equity is reflected in the overall trend of invested capital. The substantial increase in invested capital in 2025 is likely driven by the significant growth in stockholders’ equity, partially offset by a decrease in debt. The relatively stable invested capital figures from 2021-2024 suggest a period of consistent, but not expansive, capital allocation.
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Cost of Capital
Intel Corp., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 225,125) | 225,125) | ÷ | 267,316) | = | 0.84 | 0.84 | × | 22.14% | = | 18.65% | ||
| Debt3 | 41,800) | 41,800) | ÷ | 267,316) | = | 0.16 | 0.16 | × | 4.59% × (1 – 21.00%) | = | 0.57% | ||
| Operating lease liability4 | 391) | 391) | ÷ | 267,316) | = | 0.00 | 0.00 | × | 4.70% × (1 – 21.00%) | = | 0.01% | ||
| Total: | 267,316) | 1.00 | 19.22% | ||||||||||
Based on: 10-K (reporting date: 2025-12-27).
1 US$ 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 | 84,132) | 84,132) | ÷ | 128,092) | = | 0.66 | 0.66 | × | 22.14% | = | 14.54% | ||
| Debt3 | 43,500) | 43,500) | ÷ | 128,092) | = | 0.34 | 0.34 | × | 4.86% × (1 – 21.00%) | = | 1.30% | ||
| Operating lease liability4 | 460) | 460) | ÷ | 128,092) | = | 0.00 | 0.00 | × | 4.90% × (1 – 21.00%) | = | 0.01% | ||
| Total: | 128,092) | 1.00 | 15.86% | ||||||||||
Based on: 10-K (reporting date: 2024-12-28).
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 | 184,552) | 184,552) | ÷ | 232,583) | = | 0.79 | 0.79 | × | 22.14% | = | 17.57% | ||
| Debt3 | 47,600) | 47,600) | ÷ | 232,583) | = | 0.20 | 0.20 | × | 4.72% × (1 – 21.00%) | = | 0.76% | ||
| Operating lease liability4 | 431) | 431) | ÷ | 232,583) | = | 0.00 | 0.00 | × | 5.00% × (1 – 21.00%) | = | 0.01% | ||
| Total: | 232,583) | 1.00 | 18.34% | ||||||||||
Based on: 10-K (reporting date: 2023-12-30).
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 | 116,498) | 116,498) | ÷ | 155,151) | = | 0.75 | 0.75 | × | 22.14% | = | 16.63% | ||
| Debt3 | 38,244) | 38,244) | ÷ | 155,151) | = | 0.25 | 0.25 | × | 3.38% × (1 – 21.00%) | = | 0.66% | ||
| Operating lease liability4 | 409) | 409) | ÷ | 155,151) | = | 0.00 | 0.00 | × | 4.30% × (1 – 21.00%) | = | 0.01% | ||
| Total: | 155,151) | 1.00 | 17.29% | ||||||||||
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 | 195,660) | 195,660) | ÷ | 237,635) | = | 0.82 | 0.82 | × | 22.14% | = | 18.23% | ||
| Debt3 | 41,500) | 41,500) | ÷ | 237,635) | = | 0.17 | 0.17 | × | 2.57% × (1 – 21.00%) | = | 0.35% | ||
| Operating lease liability4 | 475) | 475) | ÷ | 237,635) | = | 0.00 | 0.00 | × | 2.50% × (1 – 21.00%) | = | 0.00% | ||
| Total: | 237,635) | 1.00 | 18.59% | ||||||||||
Based on: 10-K (reporting date: 2021-12-25).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
Economic Spread Ratio
Intel Corp., economic spread ratio calculation, comparison to benchmarks
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Economic profit1 | (21,836) | (27,735) | (18,360) | (11,662) | 3,041) | |
| Invested capital2 | 116,604) | 92,296) | 92,095) | 88,671) | 88,498) | |
| Performance Ratio | ||||||
| Economic spread ratio3 | -18.73% | -30.05% | -19.94% | -13.15% | 3.44% | |
| Benchmarks | ||||||
| Economic Spread Ratio, Competitors4 | ||||||
| Advanced Micro Devices Inc. | -21.43% | -27.69% | -29.12% | -28.73% | 27.84% | |
| Analog Devices Inc. | -12.05% | -14.17% | -10.08% | -11.45% | -14.69% | |
| Applied Materials Inc. | 17.08% | 10.19% | 13.17% | 23.15% | 18.63% | |
| Broadcom Inc. | -2.99% | -10.41% | 4.82% | 3.57% | -5.66% | |
| KLA Corp. | 20.46% | 16.11% | 20.05% | 22.45% | 10.91% | |
| Lam Research Corp. | 11.91% | -3.21% | 2.15% | 17.18% | 12.51% | |
| Marvell Technology Inc. | -26.62% | -26.65% | -22.31% | -25.08% | -26.81% | |
| Micron Technology Inc. | -14.83% | -26.53% | -38.30% | -10.78% | -15.51% | |
| NVIDIA Corp. | 117.20% | 61.75% | -16.34% | 25.86% | 6.34% | |
| Qualcomm Inc. | 7.98% | 3.19% | -4.11% | 22.32% | 19.70% | |
| Texas Instruments Inc. | 2.39% | 2.70% | 12.32% | 32.90% | 31.53% | |
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
1 Economic profit. See details »
2 Invested capital. See details »
3 2025 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -21,836 ÷ 116,604 = -18.73%
4 Click competitor name to see calculations.
The financial trajectory between 2021 and 2025 indicates a significant erosion of economic value, characterized by a transition from positive economic profit to substantial deficits. Despite a steady increase in the capital base, the organization has struggled to generate returns exceeding its cost of capital, resulting in a sustained period of value destruction.
- Economic Profit Trends
- Economic profit experienced a precipitous decline, falling from a positive 3,041 million US$ in 2021 to a peak deficit of 27,735 million US$ by 2024. A partial recovery occurred in 2025, with the deficit narrowing to 21,836 million US$, though the figure remains deeply negative compared to the baseline year.
- Invested Capital Expansion
- The total invested capital grew consistently throughout the period. After a period of moderate growth between 2021 and 2024, moving from 88,498 million US$ to 92,296 million US$, there was a substantial increase in 2025 to 116,604 million US$. This suggests a significant deployment of resources or asset acquisition during a period of negative economic returns.
- Economic Spread Ratio Analysis
- The economic spread ratio shows a sharp contraction from a positive 3.44% in 2021 to a low of -30.05% in 2024. This decline highlights a widening gap between the actual return on invested capital and the required cost of capital. The ratio improved to -18.73% in 2025, signaling a reduction in the rate of value destruction, although the spread continues to remain in negative territory.
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Economic Profit Margin
Intel Corp., economic profit margin calculation, comparison to benchmarks
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Economic profit1 | (21,836) | (27,735) | (18,360) | (11,662) | 3,041) | |
| Net revenue | 52,853) | 53,101) | 54,228) | 63,054) | 79,024) | |
| Performance Ratio | ||||||
| Economic profit margin2 | -41.31% | -52.23% | -33.86% | -18.50% | 3.85% | |
| Benchmarks | ||||||
| Economic Profit Margin, Competitors3 | ||||||
| Advanced Micro Devices Inc. | -38.19% | -62.53% | -74.32% | -71.26% | 10.49% | |
| Analog Devices Inc. | -46.01% | -65.44% | -36.21% | -42.90% | -94.37% | |
| Applied Materials Inc. | 12.11% | 7.09% | 8.83% | 13.37% | 11.89% | |
| Broadcom Inc. | -7.02% | -28.45% | 8.44% | 6.68% | -13.34% | |
| KLA Corp. | 15.65% | 13.83% | 15.93% | 18.98% | 10.75% | |
| Lam Research Corp. | 9.96% | -3.26% | 1.89% | 12.68% | 10.09% | |
| Marvell Technology Inc. | -82.24% | -92.17% | -75.41% | -111.94% | -82.30% | |
| Micron Technology Inc. | -23.96% | -55.62% | -130.14% | -18.25% | -25.63% | |
| NVIDIA Corp. | 42.44% | 31.17% | -12.92% | 17.34% | 4.95% | |
| Qualcomm Inc. | 5.64% | 2.53% | -3.62% | 14.87% | 11.86% | |
| Texas Instruments Inc. | 3.86% | 4.51% | 15.89% | 28.85% | 28.21% | |
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
1 Economic profit. See details »
2 2025 Calculation
Economic profit margin = 100 × Economic profit ÷ Net revenue
= 100 × -21,836 ÷ 52,853 = -41.31%
3 Click competitor name to see calculations.
The financial trajectory from 2021 through 2025 reflects a significant deterioration in economic value creation, characterized by a consistent decline in net revenue and a transition from positive to deeply negative economic profit.
- Net Revenue Trend
- A sustained downward trajectory in net revenue is observed, decreasing from 79,024 million US$ in 2021 to 52,853 million US$ by 2025. This represents a continuous contraction of the top line over the five-year period, with the most precipitous drop occurring between 2021 and 2023.
- Economic Profit Performance
- Economic profit shifted from a positive position of 3,041 million US$ in 2021 to substantial losses in subsequent years. The losses intensified annually, reaching a peak deficit of 27,735 million US$ in 2024, before showing a moderate recovery to -21,836 million US$ in 2025. This indicates that the entity failed to generate returns sufficient to cover its cost of capital for four consecutive years.
- Economic Profit Margin Analysis
- The economic profit margin mirrors the decline in absolute profit, collapsing from a positive 3.85% in 2021 to a low of -52.23% in 2024. The margin's contraction was more severe than the revenue decline, suggesting that costs or capital charges increased relative to the shrinking revenue base. A slight improvement to -41.31% in 2025 suggests a marginal stabilization in economic efficiency, although the margin remains deeply negative.
Overall, the data indicates a period of severe economic value destruction. While the 2025 figures show a slight reversal in the deepening losses, the overall trend reveals a significant erosion of the organization's ability to generate economic profit relative to its revenue.
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