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

Micron Technology Inc., economic profit calculation

US$ in millions

12 months ended:	Aug 31, 2023	Sep 1, 2022	Sep 2, 2021	Sep 3, 2020	Aug 29, 2019	Aug 30, 2018
Net operating profit after taxes (NOPAT)¹	(5,885)	9,071)	5,967)	2,891)	6,650)	14,057)
Cost of capital²	14.48%	14.85%	15.05%	14.62%	14.75%	14.70%
Invested capital³	53,467)	52,741)	46,342)	42,291)	38,774)	35,408)

Economic profit⁴	(13,628)	1,240)	(1,008)	(3,291)	930)	8,851)

Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29), 10-K (reporting date: 2018-08-30).

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
= -5,885 – 14.48% × 53,467 = -13,628

Download chart

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.	Micron Technology Inc. economic profit increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Micron Technology Inc., NOPAT calculation

US$ in millions

12 months ended:	Aug 31, 2023	Sep 1, 2022	Sep 2, 2021	Sep 3, 2020	Aug 29, 2019	Aug 30, 2018
Net income (loss) attributable to Micron	(5,833)	8,687)	5,861)	2,687)	6,313)	14,135)
Deferred income tax expense (benefit)¹	(7)	294)	(19)	110)	336)	(259)
Increase (decrease) in equity equivalents²	(7)	294)	(19)	110)	336)	(259)
Interest expense	388)	189)	183)	194)	128)	342)
Interest expense, operating lease liability³	21)	19)	15)	16)	24)	18)
Adjusted interest expense	409)	208)	198)	210)	152)	360)
Tax benefit of interest expense⁴	(86)	(44)	(42)	(44)	(32)	(93)
Adjusted interest expense, after taxes⁵	323)	165)	156)	166)	120)	268)
(Gain) loss on marketable securities	1)	1)	(3)	(6)	(3)	—)
Interest income	(468)	(96)	(37)	(114)	(205)	(120)
Investment income, before taxes	(467)	(95)	(40)	(120)	(208)	(120)
Tax expense (benefit) of investment income⁶	98)	20)	8)	25)	44)	31)
Investment income, after taxes⁷	(369)	(75)	(32)	(95)	(164)	(89)
Net income (loss) attributable to noncontrolling interest	—)	—)	—)	23)	45)	3)
Net operating profit after taxes (NOPAT)	(5,885)	9,071)	5,967)	2,891)	6,650)	14,057)

Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29), 10-K (reporting date: 2018-08-30).

¹ Elimination of deferred tax expense. See details »

² Addition of increase (decrease) in equity equivalents to net income (loss) attributable to Micron.

³ 2023 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 669 × 3.21% = 21

⁴ 2023 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 409 × 21.00% = 86

⁵ Addition of after taxes interest expense to net income (loss) attributable to Micron.

⁶ 2023 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 467 × 21.00% = 98

⁷ Elimination of after taxes investment income.

Download chart

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.	Micron Technology Inc. NOPAT increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Micron Technology Inc., cash operating taxes calculation

US$ in millions

12 months ended:	Aug 31, 2023	Sep 1, 2022	Sep 2, 2021	Sep 3, 2020	Aug 29, 2019	Aug 30, 2018
Income tax provision	177)	888)	394)	280)	693)	168)
Less: Deferred income tax expense (benefit)	(7)	294)	(19)	110)	336)	(259)
Add: Tax savings from interest expense	86)	44)	42)	44)	32)	93)
Less: Tax imposed on investment income	98)	20)	8)	25)	44)	31)
Cash operating taxes	172)	618)	446)	189)	345)	489)

Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29), 10-K (reporting date: 2018-08-30).

Download chart

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.	Micron Technology Inc. cash operating taxes increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Micron Technology Inc., invested capital calculation (financing approach)

US$ in millions

	Aug 31, 2023	Sep 1, 2022	Sep 2, 2021	Sep 3, 2020	Aug 29, 2019	Aug 30, 2018
Current debt	278)	103)	155)	270)	1,310)	859)
Long-term debt	13,052)	6,803)	6,621)	6,373)	4,541)	3,777)
Operating lease liability¹	669)	670)	559)	587)	564)	471)
Total reported debt & leases	13,999)	7,576)	7,335)	7,230)	6,415)	5,107)
Total Micron shareholders’ equity	44,120)	49,907)	43,933)	38,996)	35,881)	32,294)
Net deferred tax (assets) liabilities²	(639)	(689)	(772)	(698)	(833)	(1,019)
Equity equivalents³	(639)	(689)	(772)	(698)	(833)	(1,019)
Accumulated other comprehensive (income) loss, net of tax⁴	312)	560)	(2)	(71)	(9)	(10)
Redeemable noncontrolling interest	—)	—)	—)	—)	98)	97)
Noncontrolling interest in subsidiary	—)	—)	—)	—)	889)	870)
Adjusted total Micron shareholders’ equity	43,793)	49,778)	43,159)	38,227)	36,026)	32,232)
Construction in progress⁵	(2,464)	(1,897)	(1,517)	(1,600)	(1,700)	(1,162)
Marketable debt investments⁶	(1,861)	(2,716)	(2,635)	(1,566)	(1,967)	(769)
Invested capital	53,467)	52,741)	46,342)	42,291)	38,774)	35,408)

Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29), 10-K (reporting date: 2018-08-30).

¹ Addition of capitalized operating leases.

² Elimination of deferred taxes from assets and liabilities. See details »

³ Addition of equity equivalents to total Micron shareholders’ equity.

⁴ Removal of accumulated other comprehensive income.

⁵ Subtraction of construction in progress.

⁶ Subtraction of marketable debt investments.

Download chart

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

Micron Technology Inc., cost of capital calculations

Aug 31, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	76,818)	76,818)	÷	90,317)	=	0.85	0.85	×	16.30%	=	13.86%
Debt³	12,830)	12,830)	÷	90,317)	=	0.14	0.14	×	5.37% × (1 – 21.00%)	=	0.60%
Operating lease liability⁴	669)	669)	÷	90,317)	=	0.01	0.01	×	3.21% × (1 – 21.00%)	=	0.02%
Total:	90,317)					1.00					14.48%

Based on: 10-K (reporting date: 2023-08-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Sep 1, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	57,522)	57,522)	÷	64,550)	=	0.89	0.89	×	16.30%	=	14.52%
Debt³	6,358)	6,358)	÷	64,550)	=	0.10	0.10	×	3.87% × (1 – 21.00%)	=	0.30%
Operating lease liability⁴	670)	670)	÷	64,550)	=	0.01	0.01	×	2.90% × (1 – 21.00%)	=	0.02%
Total:	64,550)					1.00					14.85%

Based on: 10-K (reporting date: 2022-09-01).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Sep 2, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	78,438)	78,438)	÷	86,384)	=	0.91	0.91	×	16.30%	=	14.80%
Debt³	7,387)	7,387)	÷	86,384)	=	0.09	0.09	×	3.54% × (1 – 21.00%)	=	0.24%
Operating lease liability⁴	559)	559)	÷	86,384)	=	0.01	0.01	×	2.63% × (1 – 21.00%)	=	0.01%
Total:	86,384)					1.00					15.05%

Based on: 10-K (reporting date: 2021-09-02).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Sep 3, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	58,589)	58,589)	÷	67,006)	=	0.87	0.87	×	16.30%	=	14.25%
Debt³	7,830)	7,830)	÷	67,006)	=	0.12	0.12	×	3.78% × (1 – 21.00%)	=	0.35%
Operating lease liability⁴	587)	587)	÷	67,006)	=	0.01	0.01	×	2.67% × (1 – 21.00%)	=	0.02%
Total:	67,006)					1.00					14.62%

Based on: 10-K (reporting date: 2020-09-03).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Aug 29, 2019

	Capital (fair value)¹	Weights					Cost of capital
Equity²	50,371)	50,371)	÷	57,572)	=	0.87	0.87	×	16.30%	=	14.26%
Debt³	6,637)	6,637)	÷	57,572)	=	0.12	0.12	×	5.05% × (1 – 21.00%)	=	0.46%
Operating lease liability⁴	564)	564)	÷	57,572)	=	0.01	0.01	×	4.30% × (1 – 21.00%)	=	0.03%
Total:	57,572)					1.00					14.75%

Based on: 10-K (reporting date: 2019-08-29).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Aug 30, 2018

	Capital (fair value)¹	Weights					Cost of capital
Equity²	48,024)	48,024)	÷	55,262)	=	0.87	0.87	×	16.30%	=	14.16%
Debt³	6,767)	6,767)	÷	55,262)	=	0.12	0.12	×	5.68% × (1 – 25.70%)	=	0.52%
Operating lease liability⁴	471)	471)	÷	55,262)	=	0.01	0.01	×	3.86% × (1 – 25.70%)	=	0.02%
Total:	55,262)					1.00					14.70%

Based on: 10-K (reporting date: 2018-08-30).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Micron Technology Inc., economic spread ratio calculation, comparison to benchmarks

	Aug 31, 2023	Sep 1, 2022	Sep 2, 2021	Sep 3, 2020	Aug 29, 2019	Aug 30, 2018
Selected Financial Data (US$ in millions)
Economic profit¹	(13,628)	1,240)	(1,008)	(3,291)	930)	8,851)
Invested capital²	53,467)	52,741)	46,342)	42,291)	38,774)	35,408)
Performance Ratio
Economic spread ratio³	-25.49%	2.35%	-2.17%	-7.78%	2.40%	25.00%
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%	-7.80%
Applied Materials Inc.	19.06%	28.92%	24.45%	12.62%	12.24%	20.31%
Broadcom Inc.	9.62%	8.04%	-1.34%	-6.89%	-6.59%	-2.38%
Intel Corp.	-13.27%	-6.84%	10.35%	16.03%	14.11%	—
KLA Corp.	25.23%	27.47%	16.14%	4.98%	6.47%	24.64%
Lam Research Corp.	11.53%	26.14%	25.60%	8.60%	5.13%	10.30%
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%	-30.64%
Texas Instruments Inc.	15.73%	36.40%	35.01%	30.16%	29.84%	—

Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29), 10-K (reporting date: 2018-08-30).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2023 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -13,628 ÷ 53,467 = -25.49%

⁴ Click competitor name to see calculations.

Download chart

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.	Micron Technology Inc. economic spread ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Micron Technology Inc., economic profit margin calculation, comparison to benchmarks

	Aug 31, 2023	Sep 1, 2022	Sep 2, 2021	Sep 3, 2020	Aug 29, 2019	Aug 30, 2018
Selected Financial Data (US$ in millions)
Economic profit¹	(13,628)	1,240)	(1,008)	(3,291)	930)	8,851)
Revenue	15,540)	30,758)	27,705)	21,435)	23,406)	30,391)
Performance Ratio
Economic profit margin²	-87.70%	4.03%	-3.64%	-15.35%	3.98%	29.13%
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%	-23.42%
Applied Materials Inc.	12.78%	16.70%	15.60%	9.60%	8.49%	11.99%
Broadcom Inc.	16.83%	15.05%	-3.15%	-19.02%	-17.51%	-5.08%
Intel Corp.	-22.53%	-9.62%	11.60%	16.87%	15.81%	—
KLA Corp.	20.04%	23.23%	15.91%	5.58%	9.04%	15.97%
Lam Research Corp.	10.04%	18.96%	18.28%	8.42%	4.48%	8.96%
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%	-25.35%
Texas Instruments Inc.	20.28%	31.92%	31.32%	27.04%	25.02%	—

Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29), 10-K (reporting date: 2018-08-30).

¹ Economic profit. See details »

² 2023 Calculation
Economic profit margin = 100 × Economic profit ÷ Revenue
= 100 × -13,628 ÷ 15,540 = -87.70%

³ Click competitor name to see calculations.

Download chart

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.	Micron Technology Inc. economic profit margin improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Micron Technology Inc. (NASDAQ:MU)

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