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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
Net Operating Profit after Taxes (NOPAT)
Cash Operating Taxes
Invested Capital
Cost of Capital
Economic Spread Ratio
Economic Profit Margin

Intel Corp., economic profit calculation

US$ in millions

12 months ended:	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
Net operating profit after taxes (NOPAT)¹	(1,469)	3,672)	19,493)	22,960)	21,590)
Cost of capital²	11.67%	10.98%	11.67%	11.99%	12.67%
Invested capital³	92,095)	88,671)	88,498)	81,967)	80,607)

Economic profit⁴	(12,220)	(6,068)	9,164)	13,135)	11,376)

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2023 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= -1,469 – 11.67% × 92,095 = -12,220

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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.	Intel Corp. economic profit decreased from 2021 to 2022 and from 2022 to 2023.

Intel Corp., NOPAT calculation

US$ in millions

12 months ended:	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
Net income attributable to Intel	1,689)	8,014)	19,868)	20,899)	21,048)
Deferred income tax expense (benefit)¹	(2,009)	(5,158)	(742)	1,769)	522)
Increase (decrease) in accrued restructuring balance²	(791)	873)	—)	—)	—)
Increase (decrease) in equity equivalents³	(2,800)	(4,285)	(742)	1,769)	522)
Interest expense	878)	496)	597)	629)	489)
Interest expense, operating lease liability⁴	22)	18)	12)	13)	19)
Adjusted interest expense	900)	514)	609)	642)	508)
Tax benefit of interest expense⁵	(189)	(108)	(128)	(135)	(107)
Adjusted interest expense, after taxes⁶	711)	406)	481)	507)	401)
Interest income	(1,335)	(589)	(144)	(272)	(483)
Investment income, before taxes	(1,335)	(589)	(144)	(272)	(483)
Tax expense (benefit) of investment income⁷	280)	124)	30)	57)	101)
Investment income, after taxes⁸	(1,055)	(465)	(114)	(215)	(382)
Net income (loss) attributable to noncontrolling interest	(14)	3)	—)	—)	—)
Net operating profit after taxes (NOPAT)	(1,469)	3,672)	19,493)	22,960)	21,590)

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

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 attributable to Intel.

⁴ 2023 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 431 × 5.00% = 22

⁵ 2023 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 900 × 21.00% = 189

⁶ Addition of after taxes interest expense to net income attributable to Intel.

⁷ 2023 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 1,335 × 21.00% = 280

⁸ Elimination of after taxes investment income.

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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.	Intel Corp. NOPAT decreased from 2021 to 2022 and from 2022 to 2023.

Intel Corp., cash operating taxes calculation

US$ in millions

12 months ended:	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
Provision for (benefit from) taxes	(913)	(249)	1,835)	4,179)	3,010)
Less: Deferred income tax expense (benefit)	(2,009)	(5,158)	(742)	1,769)	522)
Add: Tax savings from interest expense	189)	108)	128)	135)	107)
Less: Tax imposed on investment income	280)	124)	30)	57)	101)
Cash operating taxes	1,005)	4,893)	2,675)	2,488)	2,493)

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

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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.	Intel Corp. cash operating taxes increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Intel Corp., invested capital calculation (financing approach)

US$ in millions

	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
Short-term debt	2,288)	4,367)	4,591)	2,504)	3,693)
Long-term debt	46,978)	37,684)	33,510)	33,897)	25,308)
Operating lease liability¹	431)	409)	475)	527)	550)
Total reported debt & leases	49,697)	42,460)	38,576)	36,928)	29,551)
Total Intel stockholders’ equity	105,590)	101,423)	95,391)	81,038)	77,504)
Net deferred tax (assets) liabilities²	(5,273)	(3,248)	1,793)	2,611)	835)
Accrued restructuring balance³	82)	873)	—)	—)	—)
Equity equivalents⁴	(5,191)	(2,375)	1,793)	2,611)	835)
Accumulated other comprehensive (income) loss, net of tax⁵	215)	562)	880)	751)	1,280)
Temporary equity	—)	—)	—)	—)	155)
Non-controlling interests	4,375)	1,863)	—)	—)	—)
Adjusted total Intel stockholders’ equity	104,989)	101,473)	98,064)	84,400)	79,774)
Construction in progress⁶	(43,442)	(36,727)	(21,545)	(17,309)	(16,063)
Marketable securities⁷	(19,149)	(18,535)	(26,597)	(22,052)	(12,655)
Invested capital	92,095)	88,671)	88,498)	81,967)	80,607)

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

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.

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Item	Description	The company
Invested capital	Capital is an approximation of the economic book value of all cash invested in going-concern business activities.	Intel Corp. invested capital increased from 2021 to 2022 and from 2022 to 2023.

Intel Corp., cost of capital calculations

Dec 30, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	184,552)	184,552)	÷	232,583)	=	0.79	0.79	×	13.74%	=	10.90%
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					11.67%

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 »

Dec 31, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	116,498)	116,498)	÷	155,151)	=	0.75	0.75	×	13.74%	=	10.32%
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					10.98%

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 »

Dec 25, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	195,660)	195,660)	÷	237,635)	=	0.82	0.82	×	13.74%	=	11.31%
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					11.67%

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 »

Dec 26, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	230,210)	230,210)	÷	271,637)	=	0.85	0.85	×	13.74%	=	11.65%
Debt³	40,900)	40,900)	÷	271,637)	=	0.15	0.15	×	2.84% × (1 – 21.00%)	=	0.34%
Operating lease liability⁴	527)	527)	÷	271,637)	=	0.00	0.00	×	2.50% × (1 – 21.00%)	=	0.00%
Total:	271,637)					1.00					11.99%

Based on: 10-K (reporting date: 2020-12-26).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Dec 28, 2019

	Capital (fair value)¹	Weights					Cost of capital
Equity²	292,846)	292,846)	÷	323,998)	=	0.90	0.90	×	13.74%	=	12.42%
Debt³	30,602)	30,602)	÷	323,998)	=	0.09	0.09	×	3.30% × (1 – 21.00%)	=	0.25%
Operating lease liability⁴	550)	550)	÷	323,998)	=	0.00	0.00	×	3.40% × (1 – 21.00%)	=	0.00%
Total:	323,998)					1.00					12.67%

Based on: 10-K (reporting date: 2019-12-28).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Intel Corp., economic spread ratio calculation, comparison to benchmarks

	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
Selected Financial Data (US$ in millions)
Economic profit¹	(12,220)	(6,068)	9,164)	13,135)	11,376)
Invested capital²	92,095)	88,671)	88,498)	81,967)	80,607)
Performance Ratio
Economic spread ratio³	-13.27%	-6.84%	10.35%	16.03%	14.11%
Benchmarks
Economic Spread Ratio, Competitors⁴
Advanced Micro Devices Inc.	-19.21%	-18.93%	37.80%	11.55%	-6.59%
Analog Devices Inc.	-6.86%	-8.22%	-11.49%	-6.55%	-5.01%
Applied Materials Inc.	19.06%	28.92%	24.45%	12.62%	12.24%
Broadcom Inc.	9.62%	8.04%	-1.34%	-6.89%	-6.59%
KLA Corp.	25.23%	27.47%	16.14%	4.98%	6.47%
Lam Research Corp.	11.53%	26.14%	25.60%	8.60%	5.13%
Micron Technology Inc.	-25.49%	2.35%	-2.17%	-7.78%	2.40%
NVIDIA Corp.	-8.88%	33.32%	13.75%	-0.24%	60.35%
ON Semiconductor Corp.	0.44%	2.34%	-2.01%	-13.33%	-9.88%
Qualcomm Inc.	3.76%	30.20%	27.61%	12.65%	14.03%
Texas Instruments Inc.	15.73%	36.40%	35.01%	30.16%	29.84%

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2023 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -12,220 ÷ 92,095 = -13.27%

⁴ Click competitor name to see calculations.

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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.	Intel Corp. economic spread ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

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

	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021	Dec 26, 2020	Dec 28, 2019
Selected Financial Data (US$ in millions)
Economic profit¹	(12,220)	(6,068)	9,164)	13,135)	11,376)
Net revenue	54,228)	63,054)	79,024)	77,867)	71,965)
Performance Ratio
Economic profit margin²	-22.53%	-9.62%	11.60%	16.87%	15.81%
Benchmarks
Economic Profit Margin, Competitors³
Advanced Micro Devices Inc.	-49.03%	-46.94%	14.25%	5.16%	-3.34%
Analog Devices Inc.	-24.63%	-30.80%	-73.82%	-21.28%	-15.35%
Applied Materials Inc.	12.78%	16.70%	15.60%	9.60%	8.49%
Broadcom Inc.	16.83%	15.05%	-3.15%	-19.02%	-17.51%
KLA Corp.	20.04%	23.23%	15.91%	5.58%	9.04%
Lam Research Corp.	10.04%	18.96%	18.28%	8.42%	4.48%
Micron Technology Inc.	-87.70%	4.03%	-3.64%	-15.35%	3.98%
NVIDIA Corp.	-7.02%	22.34%	10.75%	-0.32%	24.64%
ON Semiconductor Corp.	0.58%	2.63%	-2.26%	-17.47%	-12.28%
Qualcomm Inc.	3.31%	20.12%	16.63%	9.54%	12.39%
Texas Instruments Inc.	20.28%	31.92%	31.32%	27.04%	25.02%

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26), 10-K (reporting date: 2019-12-28).

¹ Economic profit. See details »

² 2023 Calculation
Economic profit margin = 100 × Economic profit ÷ Net revenue
= 100 × -12,220 ÷ 54,228 = -22.53%

³ Click competitor name to see calculations.

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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.	Intel Corp. economic profit margin deteriorated from 2021 to 2022 and from 2022 to 2023.

Intel Corp. (NASDAQ:INTC)

Economic Value Added (EVA)

Economic Profit

Net Operating Profit after Taxes (NOPAT)

Cash Operating Taxes

Invested Capital

Cost of Capital

Economic Spread Ratio

Economic Profit Margin