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
Marvell Technology Inc., economic profit calculation
US$ in thousands
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30).
1 NOPAT. See details »
2 Cost of capital. See details »
3 Invested capital. See details »
4 2026 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 2,832,272 – 23.54% × 19,075,400 = -1,657,277
The analysis of economic value added reveals a consistent failure to generate positive economic profit over the observed six-year period. Despite significant volatility in operating performance, the cost of capital consistently exceeded the returns generated by the invested capital base, resulting in a continuous destruction of economic value.
- Net Operating Profit After Taxes (NOPAT)
- NOPAT exhibited high volatility and remained negative for five of the six years analyzed. After fluctuating between negative 251 million USD and negative 598 million USD from 2021 to 2025, a substantial reversal occurred by January 2026, with NOPAT rising to 2.83 billion USD.
- Invested Capital and Cost of Capital
- Invested capital underwent a rapid expansion between January 2021 and January 2022, increasing from 9.14 billion USD to 20.02 billion USD. This capital base remained relatively stable thereafter, fluctuating between 17.76 billion USD and 20.03 billion USD. Throughout this period, the cost of capital remained consistently high and stable, ranging from a low of 22.29% in 2023 to a high of 23.87% in 2021.
- Economic Profit Performance
- Economic profit remained negative across all reporting dates, indicating that the returns on invested capital were insufficient to cover the cost of financing. The deficit deepened significantly following the increase in invested capital in 2022, reaching a peak loss of 5.04 billion USD in February 2024. While the sharp improvement in NOPAT in 2026 reduced the economic loss to 1.66 billion USD, the company has yet to achieve a positive economic profit threshold.
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Net Operating Profit after Taxes (NOPAT)
Marvell Technology Inc., NOPAT calculation
US$ in thousands
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30).
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 restructuring liabilities.
5 Addition of increase (decrease) in equity equivalents to net income (loss).
6 2026 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 319,700 × 4.60% = 14,706
7 2026 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 217,306 × 21.00% = 45,634
8 Addition of after taxes interest expense to net income (loss).
The financial trajectory from 2021 to 2026 is characterized by a prolonged period of operational losses followed by a sharp transition to profitability. For five consecutive years, the organization faced challenges in generating positive returns, with a significant recovery occurring in the final period of the analysis.
- Net Operating Profit After Taxes (NOPAT) Trends
- NOPAT exhibited high volatility between 2021 and 2025. After declining from -251,091 thousand in 2021 to -382,896 thousand in 2022, a brief period of operational profitability was achieved in 2023 with a NOPAT of 33,469 thousand. This trend reversed sharply in 2024, with NOPAT dropping to -598,018 thousand, before stabilizing slightly at -545,524 thousand in 2025.
- Comparison of Operating and Net Performance
- A divergence between operating performance and bottom-line results is observed in 2023, where NOPAT was positive while net income remained negative at -163,500 thousand. This indicates that while core operations were nominally profitable, non-operating expenses or financial costs continued to weigh on the net result. In contrast, the losses in 2024 and 2025 were severe across both metrics, with net income losses exceeding NOPAT losses, suggesting additional non-operating pressures during those years.
- Analysis of the 2026 Turnaround
- A substantial pivot in financial health occurred in 2026. NOPAT surged to 2,832,272 thousand, while net income rose to 2,670,100 thousand. This represents a significant departure from the previous five-year trend, moving from deep operational deficits to robust profitability, which indicates a fundamental shift in the organization's ability to generate economic value from its core operations.
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Cash Operating Taxes
Marvell Technology Inc., cash operating taxes calculation
US$ in thousands
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30).
An analysis of tax expenditures reveals a significant divergence between accrual-based tax provisions and actual cash tax outflows over the six-year period ending January 31, 2026. While tax provisions exhibited high volatility, characterized by alternating benefits and provisions, cash operating taxes demonstrated a general upward trajectory despite a temporary contraction in 2024.
- Cash Operating Tax Trajectory
- Cash operating taxes increased from 10,273 thousand US dollars in January 2021 to 379,934 thousand US dollars by January 2026. This represents a substantial rise in actual cash outflows for taxes, notwithstanding a temporary decline to 70,334 thousand US dollars in February 2024. The most aggressive growth occurred between February 2025 and January 2026, where cash taxes increased by approximately 163%.
- Provision and Benefit Volatility
- The provision for income taxes showed extreme fluctuation, switching between tax benefits and provisions. Benefits were recorded in 2021, 2022, and 2025, whereas provisions were recorded in 2023, 2024, and 2026. The provision reached its highest point in January 2026 at 376,500 thousand US dollars, correlating with the peak in cash operating taxes.
- Accrual and Cash Divergence
- A notable discrepancy is observed in February 2025, where a tax benefit of 9,700 thousand US dollars was recognized on an accrual basis, yet actual cash operating taxes amounted to 144,672 thousand US dollars. This divergence indicates that accounting tax benefits did not translate into cash savings during that period, highlighting a significant gap between reported tax expenses and actual cash impact.
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Invested Capital
Marvell Technology Inc., invested capital calculation (financing approach)
US$ in thousands
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30).
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 restructuring liabilities.
6 Addition of equity equivalents to stockholders’ equity.
7 Removal of accumulated other comprehensive income.
The analysis of the capital structure indicates a significant expansion of the investment base between January 2021 and January 2022, followed by a period of moderate volatility and a subsequent recovery by January 2026. The most notable shift occurred in the 2021-2022 period, where invested capital more than doubled, signaling a substantial increase in the resources deployed to generate economic value.
- Invested Capital Trajectory
- Invested capital rose sharply from 9,144,445 thousand US dollars in January 2021 to 20,017,061 thousand US dollars in January 2022. This figure remained nearly stagnant through January 2023 before entering a downward trend, reaching a low of 17,756,100 thousand US dollars in February 2025. A recovery is observed in the final period, with invested capital increasing to 19,075,400 thousand US dollars by January 2026.
- Debt and Lease Obligations
- Total reported debt and leases experienced a steep increase from 1,329,689 thousand US dollars in January 2021 to 4,726,477 thousand US dollars in January 2022. Following this surge, debt levels remained relatively stable, fluctuating slightly between 4,343,100 thousand US dollars and 4,790,300 thousand US dollars over the subsequent four years, suggesting a stabilized leverage strategy after the initial expansion.
- Stockholders' Equity Dynamics
- Equity grew substantially from 8,435,804 thousand US dollars in January 2021 to a peak of 15,702,097 thousand US dollars in January 2022. A gradual decline followed, with equity falling to 13,427,000 thousand US dollars by February 2025. Similar to the overall invested capital trend, stockholders' equity rebounded in the final period to 14,308,400 thousand US dollars.
- Capital Composition Insights
- The rapid increase in both debt and equity in 2022 suggests a coordinated financing event to scale the balance sheet. The subsequent decline in invested capital between 2023 and 2025 was driven primarily by a reduction in stockholders' equity, as debt levels remained comparatively flat. The resurgence in 2026 indicates a renewed increase in both debt and equity components.
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Cost of Capital
Marvell Technology Inc., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 79,071,692) | 79,071,692) | ÷ | 83,891,392) | = | 0.94 | 0.94 | × | 24.77% | = | 23.34% | ||
| Borrowings3 | 4,500,000) | 4,500,000) | ÷ | 83,891,392) | = | 0.05 | 0.05 | × | 4.18% × (1 – 21.00%) | = | 0.18% | ||
| Operating lease liability4 | 319,700) | 319,700) | ÷ | 83,891,392) | = | 0.00 | 0.00 | × | 4.60% × (1 – 21.00%) | = | 0.01% | ||
| Total: | 83,891,392) | 1.00 | 23.54% | ||||||||||
Based on: 10-K (reporting date: 2026-01-31).
1 US$ in thousands
2 Equity. See details »
3 Borrowings. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 60,497,085) | 60,497,085) | ÷ | 64,766,985) | = | 0.93 | 0.93 | × | 24.77% | = | 23.13% | ||
| Borrowings3 | 3,990,600) | 3,990,600) | ÷ | 64,766,985) | = | 0.06 | 0.06 | × | 4.03% × (1 – 21.00%) | = | 0.20% | ||
| Operating lease liability4 | 279,300) | 279,300) | ÷ | 64,766,985) | = | 0.00 | 0.00 | × | 4.60% × (1 – 21.00%) | = | 0.02% | ||
| Total: | 64,766,985) | 1.00 | 23.35% | ||||||||||
Based on: 10-K (reporting date: 2025-02-01).
1 US$ in thousands
2 Equity. See details »
3 Borrowings. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 58,567,580) | 58,567,580) | ÷ | 62,802,980) | = | 0.93 | 0.93 | × | 24.77% | = | 23.10% | ||
| Borrowings3 | 4,000,000) | 4,000,000) | ÷ | 62,802,980) | = | 0.06 | 0.06 | × | 4.09% × (1 – 21.00%) | = | 0.21% | ||
| Operating lease liability4 | 235,400) | 235,400) | ÷ | 62,802,980) | = | 0.00 | 0.00 | × | 4.00% × (1 – 21.00%) | = | 0.01% | ||
| Total: | 62,802,980) | 1.00 | 23.32% | ||||||||||
Based on: 10-K (reporting date: 2024-02-03).
1 US$ in thousands
2 Equity. See details »
3 Borrowings. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 35,055,779) | 35,055,779) | ÷ | 39,523,679) | = | 0.89 | 0.89 | × | 24.77% | = | 21.97% | ||
| Borrowings3 | 4,222,500) | 4,222,500) | ÷ | 39,523,679) | = | 0.11 | 0.11 | × | 3.65% × (1 – 21.00%) | = | 0.31% | ||
| Operating lease liability4 | 245,400) | 245,400) | ÷ | 39,523,679) | = | 0.01 | 0.01 | × | 3.66% × (1 – 21.00%) | = | 0.02% | ||
| Total: | 39,523,679) | 1.00 | 22.29% | ||||||||||
Based on: 10-K (reporting date: 2023-01-28).
1 US$ in thousands
2 Equity. See details »
3 Borrowings. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 55,318,950) | 55,318,950) | ÷ | 60,085,575) | = | 0.92 | 0.92 | × | 24.77% | = | 22.80% | ||
| Borrowings3 | 4,588,125) | 4,588,125) | ÷ | 60,085,575) | = | 0.08 | 0.08 | × | 2.75% × (1 – 21.00%) | = | 0.17% | ||
| Operating lease liability4 | 178,500) | 178,500) | ÷ | 60,085,575) | = | 0.00 | 0.00 | × | 2.47% × (1 – 21.00%) | = | 0.01% | ||
| Total: | 60,085,575) | 1.00 | 22.97% | ||||||||||
Based on: 10-K (reporting date: 2022-01-29).
1 US$ in thousands
2 Equity. See details »
3 Borrowings. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 32,406,572) | 32,406,572) | ÷ | 33,843,450) | = | 0.96 | 0.96 | × | 24.77% | = | 23.72% | ||
| Borrowings3 | 1,300,000) | 1,300,000) | ÷ | 33,843,450) | = | 0.04 | 0.04 | × | 4.56% × (1 – 21.00%) | = | 0.14% | ||
| Operating lease liability4 | 136,878) | 136,878) | ÷ | 33,843,450) | = | 0.00 | 0.00 | × | 3.85% × (1 – 21.00%) | = | 0.01% | ||
| Total: | 33,843,450) | 1.00 | 23.87% | ||||||||||
Based on: 10-K (reporting date: 2021-01-30).
1 US$ in thousands
2 Equity. See details »
3 Borrowings. See details »
4 Operating lease liability. See details »
Economic Spread Ratio
Marvell Technology Inc., economic spread ratio calculation, comparison to benchmarks
| Jan 31, 2026 | Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Economic profit1 | (1,657,277) | (4,690,994) | (5,037,350) | (4,430,960) | (4,981,739) | (2,433,586) | |
| Invested capital2 | 19,075,400) | 17,756,100) | 19,040,600) | 20,025,300) | 20,017,061) | 9,144,445) | |
| Performance Ratio | |||||||
| Economic spread ratio3 | -8.69% | -26.42% | -26.46% | -22.13% | -24.89% | -26.61% | |
| Benchmarks | |||||||
| Economic Spread Ratio, Competitors4 | |||||||
| Advanced Micro Devices Inc. | — | -21.11% | -27.37% | -28.80% | -28.42% | 28.16% | |
| Analog Devices Inc. | — | -12.03% | -14.15% | -10.06% | -11.43% | -14.67% | |
| Applied Materials Inc. | — | 17.27% | 10.37% | 13.36% | 23.33% | 18.82% | |
| Broadcom Inc. | — | -2.94% | -10.36% | 4.87% | 3.61% | -5.62% | |
| Intel Corp. | — | -18.62% | -29.96% | -19.83% | -13.05% | 3.54% | |
| KLA Corp. | 27.69% | 20.58% | 16.23% | 20.17% | 22.57% | 11.03% | |
| Lam Research Corp. | 11.97% | 12.15% | -2.98% | 2.38% | 17.40% | 12.74% | |
| Micron Technology Inc. | 56.59% | -14.47% | -26.19% | -37.98% | -10.44% | -15.17% | |
| NVIDIA Corp. | 86.39% | 117.48% | 62.03% | -16.05% | 26.14% | 6.62% | |
| Qualcomm Inc. | — | 12.49% | 7.70% | 0.23% | 26.66% | 24.06% | |
| Texas Instruments Inc. | — | 2.39% | 2.70% | 12.32% | 32.90% | 31.54% | |
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30).
1 Economic profit. See details »
2 Invested capital. See details »
3 2026 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -1,657,277 ÷ 19,075,400 = -8.69%
4 Click competitor name to see calculations.
The analysis of economic value added reveals a consistent period of negative economic profit from 2021 through 2026, indicating that the return on invested capital remained below the weighted average cost of capital throughout the period. However, a significant improvement in performance is observed in the final year of the analysis.
- Economic Profit Trends
- Economic profit remained negative for six consecutive years, reflecting an inability to generate surplus value over the cost of capital. Losses intensified between 2021 and 2022, dropping from -2.43 billion USD to -4.98 billion USD. This downward trajectory persisted with a peak deficit of -5.04 billion USD in February 2024. A notable recovery began thereafter, culminating in a substantial reduction of economic loss to -1.66 billion USD by January 2026.
- Invested Capital Dynamics
- A sharp increase in invested capital occurred between January 2021 and January 2022, where the figure rose from 9.14 billion USD to 20.02 billion USD. Following this expansion, capital levels remained relatively stable, experiencing a slight contraction to 17.76 billion USD by February 2025 before returning to 19.08 billion USD in January 2026. The initial surge suggests a period of aggressive asset acquisition or capital expenditure that did not immediately translate into positive economic profit.
- Economic Spread Ratio Analysis
- The economic spread ratio remained deeply negative for the majority of the period, fluctuating between -22.13% and -26.61% from 2021 to 2025. This indicates a persistent and significant gap between the actual returns generated and the required rate of return. A dramatic reversal is observed in January 2026, where the ratio improved to -8.69%, suggesting a narrowing of the spread and a move toward economic value creation.
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Economic Profit Margin
Marvell Technology Inc., economic profit margin calculation, comparison to benchmarks
| Jan 31, 2026 | Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Economic profit1 | (1,657,277) | (4,690,994) | (5,037,350) | (4,430,960) | (4,981,739) | (2,433,586) | |
| Net revenue | 8,194,600) | 5,767,300) | 5,507,700) | 5,919,600) | 4,462,383) | 2,968,900) | |
| Add: Increase (decrease) in deferred revenue | 18,000) | (21,100) | (2,000) | 6,200) | 22,816) | 10,499) | |
| Adjusted net revenue | 8,212,600) | 5,746,200) | 5,505,700) | 5,925,800) | 4,485,199) | 2,979,399) | |
| Performance Ratio | |||||||
| Economic profit margin2 | -20.18% | -81.64% | -91.49% | -74.77% | -111.07% | -81.68% | |
| Benchmarks | |||||||
| Economic Profit Margin, Competitors3 | |||||||
| Advanced Micro Devices Inc. | — | -37.61% | -61.81% | -73.50% | -70.47% | 10.61% | |
| Analog Devices Inc. | — | -45.93% | -65.34% | -36.13% | -42.83% | -94.24% | |
| Applied Materials Inc. | — | 12.25% | 7.22% | 8.96% | 13.47% | 12.01% | |
| Broadcom Inc. | — | -6.91% | -28.32% | 8.52% | 6.76% | -13.24% | |
| Intel Corp. | — | -41.07% | -52.08% | -33.68% | -18.36% | 3.97% | |
| KLA Corp. | 20.91% | 15.74% | 13.93% | 16.02% | 19.08% | 10.87% | |
| Lam Research Corp. | 9.32% | 10.15% | -3.02% | 2.09% | 12.85% | 10.28% | |
| Micron Technology Inc. | 40.87% | -23.39% | -54.91% | -129.04% | -17.68% | -25.06% | |
| NVIDIA Corp. | 41.84% | 42.55% | 31.32% | -12.70% | 17.52% | 5.17% | |
| Qualcomm Inc. | — | 8.83% | 6.10% | 0.20% | 17.76% | 14.49% | |
| Texas Instruments Inc. | — | 3.86% | 4.52% | 15.89% | 28.85% | 28.21% | |
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30).
1 Economic profit. See details »
2 2026 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted net revenue
= 100 × -1,657,277 ÷ 8,212,600 = -20.18%
3 Click competitor name to see calculations.
The financial trajectory of the entity is characterized by a persistent inability to generate positive economic profit throughout the observed period, although a significant trend toward recovery is evident in the final year. Despite substantial growth in adjusted net revenue, the cost of capital has consistently exceeded operating returns, resulting in negative economic value added across all reported intervals.
- Economic Profit Trends
- Economic profit remained negative from 2021 through 2026. Losses widened from -2.43 billion in 2021 to a peak deficit of -5.04 billion in 2024. A marked improvement occurred by January 31, 2026, where economic losses were reduced to -1.66 billion, indicating a narrowing gap between earned returns and the required return on capital.
- Adjusted Net Revenue Trajectory
- An overall upward trajectory in adjusted net revenue is observed, increasing from 2.98 billion in 2021 to 8.21 billion in 2026. While a slight contraction occurred in 2024, the subsequent growth through 2026 suggests an expansion in scale that eventually contributed to the stabilization of economic performance.
- Economic Profit Margin Analysis
- The economic profit margin exhibited significant volatility, reaching its lowest point of -111.07% in 2022. Between 2021 and 2025, the margin largely fluctuated within a range of -74% to -91%. However, the period ending January 31, 2026, shows a substantial recovery, with the margin improving to -20.18%. This sharp upward shift indicates a significant increase in the efficiency of capital utilization and a trajectory moving toward economic breakeven.
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