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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

Moderna Inc., economic profit calculation

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net operating profit after taxes (NOPAT)¹	3,520)	14,737)	3,091)	(605)	(469)
Cost of capital²	19.30%	19.41%	19.62%	19.52%	18.92%
Invested capital³	7,126)	10,693)	4,183)	481)	1,020)

Economic profit⁴	2,145)	12,662)	2,270)	(699)	(662)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2022 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 3,520 – 19.30% × 7,126 = 2,145

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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.	Moderna Inc. economic profit increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Moderna Inc., NOPAT calculation

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income (loss)	8,362)	12,202)	(747)	(514)	(385)
Deferred income tax expense (benefit)¹	(578)	(296)	—)	(1)	—)
Increase (decrease) in deferred revenue²	(4,157)	2,824)	3,842)	(72)	(65)
Increase (decrease) in equity equivalents³	(4,735)	2,528)	3,842)	(73)	(65)
Interest expense	29)	18)	10)	7)	3)
Interest expense, operating lease liability⁴	10)	10)	11)	9)	—)
Adjusted interest expense	39)	28)	21)	16)	3)
Tax benefit of interest expense⁵	(8)	(6)	(4)	(3)	(1)
Adjusted interest expense, after taxes⁶	30)	22)	16)	13)	2)
(Gain) loss on marketable securities	26)	(1)	(1)	—)	—)
Interest income	(200)	(18)	(25)	(39)	(27)
Investment income, before taxes	(174)	(19)	(26)	(39)	(27)
Tax expense (benefit) of investment income⁷	37)	4)	5)	8)	6)
Investment income, after taxes⁸	(137)	(15)	(21)	(31)	(21)
Net operating profit after taxes (NOPAT)	3,520)	14,737)	3,091)	(605)	(469)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ Elimination of deferred tax expense. See details »

² Addition of increase (decrease) in deferred revenue.

³ Addition of increase (decrease) in equity equivalents to net income (loss).

⁴ 2022 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 127 × 7.50% = 10

⁵ 2022 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 39 × 21.00% = 8

⁶ Addition of after taxes interest expense to net income (loss).

⁷ 2022 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 174 × 21.00% = 37

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.	Moderna Inc. NOPAT increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.

Moderna Inc., cash operating taxes calculation

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Provision for (benefit from) income taxes	1,213)	1,083)	3)	(1)	—)
Less: Deferred income tax expense (benefit)	(578)	(296)	—)	(1)	—)
Add: Tax savings from interest expense	8)	6)	4)	3)	1)
Less: Tax imposed on investment income	37)	4)	5)	8)	6)
Cash operating taxes	1,763)	1,381)	1)	(4)	(5)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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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.	Moderna Inc. cash operating taxes increased from 2020 to 2021 and from 2021 to 2022.

Moderna Inc., invested capital calculation (financing approach)

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Financing lease liabilities, current	161)	165)	24)	—)	—)
Financing lease liabilities, non-current	912)	599)	110)	39)	—)
Deferred lease obligation, non-current	—)	—)	—)	—)	10)
Lease financing obligation	—)	—)	—)	—)	33)
Operating lease liability¹	127)	152)	103)	97)	212)
Total reported debt & leases	1,200)	916)	238)	136)	255)
Stockholders’ equity	19,123)	14,145)	2,561)	1,175)	1,530)
Net deferred tax (assets) liabilities²	(982)	(326)	—)	—)	—)
Deferred revenue³	2,711)	6,868)	4,045)	202)	274)
Equity equivalents⁴	1,729)	6,542)	4,045)	202)	274)
Accumulated other comprehensive (income) loss, net of tax⁵	370)	24)	(3)	(2)	1)
Adjusted stockholders’ equity	21,222)	20,711)	6,603)	1,375)	1,806)
Construction in progress⁶	(281)	(212)	(35)	(3)	(5)
Marketable securities⁷	(15,015)	(10,722)	(2,623)	(1,027)	(1,036)
Invested capital	7,126)	10,693)	4,183)	481)	1,020)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ Addition of capitalized operating leases.

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

³ Addition of deferred revenue.

⁴ Addition of equity equivalents to 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.	Moderna Inc. invested capital increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.

Moderna Inc., cost of capital calculations

Dec 31, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	53,802)	53,802)	÷	55,002)	=	0.98	0.98	×	19.66%	=	19.23%
Financing lease liabilities³	1,073)	1,073)	÷	55,002)	=	0.02	0.02	×	3.60% × (1 – 21.00%)	=	0.06%
Operating lease liability⁴	127)	127)	÷	55,002)	=	0.00	0.00	×	7.50% × (1 – 21.00%)	=	0.01%
Total:	55,002)					1.00					19.30%

Based on: 10-K (reporting date: 2022-12-31).

¹ US$ in millions

² Equity. See details »

³ Financing lease liabilities. See details »

⁴ Operating lease liability. See details »

Dec 31, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	60,967)	60,967)	÷	61,883)	=	0.99	0.99	×	19.66%	=	19.37%
Financing lease liabilities³	764)	764)	÷	61,883)	=	0.01	0.01	×	3.10% × (1 – 21.00%)	=	0.03%
Operating lease liability⁴	152)	152)	÷	61,883)	=	0.00	0.00	×	6.80% × (1 – 21.00%)	=	0.01%
Total:	61,883)					1.00					19.41%

Based on: 10-K (reporting date: 2021-12-31).

¹ US$ in millions

² Equity. See details »

³ Financing lease liabilities. See details »

⁴ Operating lease liability. See details »

Dec 31, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	61,888)	61,888)	÷	62,126)	=	1.00	1.00	×	19.66%	=	19.58%
Financing lease liabilities³	134)	134)	÷	62,126)	=	0.00	0.00	×	13.10% × (1 – 21.00%)	=	0.02%
Operating lease liability⁴	103)	103)	÷	62,126)	=	0.00	0.00	×	10.30% × (1 – 21.00%)	=	0.01%
Total:	62,126)					1.00					19.62%

Based on: 10-K (reporting date: 2020-12-31).

¹ US$ in millions

² Equity. See details »

³ Financing lease liabilities. See details »

⁴ Operating lease liability. See details »

Dec 31, 2019

	Capital (fair value)¹	Weights					Cost of capital
Equity²	9,644)	9,644)	÷	9,780)	=	0.99	0.99	×	19.66%	=	19.39%
Financing lease liabilities³	39)	39)	÷	9,780)	=	0.00	0.00	×	17.20% × (1 – 21.00%)	=	0.05%
Operating lease liability⁴	97)	97)	÷	9,780)	=	0.01	0.01	×	9.70% × (1 – 21.00%)	=	0.08%
Total:	9,780)					1.00					19.52%

Based on: 10-K (reporting date: 2019-12-31).

¹ US$ in millions

² Equity. See details »

³ Financing lease liabilities. See details »

⁴ Operating lease liability. See details »

Dec 31, 2018

	Capital (fair value)¹	Weights					Cost of capital
Equity²	6,570)	6,570)	÷	6,825)	=	0.96	0.96	×	19.66%	=	18.92%
Financing lease liabilities³	43)	43)	÷	6,825)	=	0.01	0.01	×	0.00% × (1 – 21.00%)	=	0.00%
Operating lease liability⁴	212)	212)	÷	6,825)	=	0.03	0.03	×	0.00% × (1 – 21.00%)	=	0.00%
Total:	6,825)					1.00					18.92%

Based on: 10-K (reporting date: 2018-12-31).

¹ US$ in millions

² Equity. See details »

³ Financing lease liabilities. See details »

⁴ Operating lease liability. See details »

Moderna Inc., economic spread ratio calculation, comparison to benchmarks

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in millions)
Economic profit¹	2,145)	12,662)	2,270)	(699)	(662)
Invested capital²	7,126)	10,693)	4,183)	481)	1,020)
Performance Ratio
Economic spread ratio³	30.10%	118.41%	54.26%	-145.39%	-64.88%
Benchmarks
Economic Spread Ratio, Competitors⁴
AbbVie Inc.	5.45%	4.84%	-3.02%	7.26%	—
Amgen Inc.	7.46%	7.44%	11.76%	13.97%	—
Bristol-Myers Squibb Co.	-0.71%	1.55%	-14.02%	-3.70%	—
Danaher Corp.	-2.63%	-1.98%	-3.38%	-6.79%	—
Eli Lilly & Co.	10.54%	12.24%	18.90%	15.73%	—
Gilead Sciences Inc.	2.40%	8.94%	-4.12%	7.18%	—
Johnson & Johnson	5.25%	10.32%	5.09%	4.00%	—
Merck & Co. Inc.	11.66%	11.79%	4.63%	11.21%	—
Pfizer Inc.	18.69%	11.84%	-2.87%	5.74%	—
Regeneron Pharmaceuticals Inc.	24.16%	67.16%	39.03%	28.28%	—
Thermo Fisher Scientific Inc.	-2.74%	-0.91%	0.09%	-3.80%	—
Zoetis Inc.	3.77%	6.55%	3.30%	4.27%	—

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2022 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × 2,145 ÷ 7,126 = 30.10%

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.	Moderna Inc. economic spread ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Moderna Inc., economic profit margin calculation, comparison to benchmarks

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in millions)
Economic profit¹	2,145)	12,662)	2,270)	(699)	(662)

Product sales	18,435)	17,675)	200)	—)	—)
Add: Increase (decrease) in deferred revenue	(4,157)	2,824)	3,842)	(72)	(65)
Adjusted product sales	14,278)	20,499)	4,042)	(72)	(65)
Performance Ratio
Economic profit margin²	15.02%	61.77%	56.16%	—	—
Benchmarks
Economic Profit Margin, Competitors³
AbbVie Inc.	7.72%	8.26%	-6.83%	13.69%	—
Amgen Inc.	11.95%	12.32%	18.82%	23.52%	—
Bristol-Myers Squibb Co.	-1.10%	2.68%	-29.73%	-14.18%	—
Danaher Corp.	-6.54%	-4.96%	-9.92%	-22.00%	—
Eli Lilly & Co.	8.97%	11.30%	18.91%	15.15%	—
Gilead Sciences Inc.	4.05%	15.81%	-8.51%	10.21%	—
Johnson & Johnson	6.30%	10.80%	6.07%	4.72%	—
Merck & Co. Inc.	14.54%	17.13%	5.52%	12.85%	—
Pfizer Inc.	20.63%	12.77%	-7.11%	13.42%	—
Regeneron Pharmaceuticals Inc.	24.32%	45.41%	38.03%	23.48%	—
Thermo Fisher Scientific Inc.	-5.06%	-1.86%	0.17%	-7.83%	—
Zoetis Inc.	5.85%	9.78%	5.71%	6.71%	—

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ Economic profit. See details »

² 2022 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted product sales
= 100 × 2,145 ÷ 14,278 = 15.02%

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.	Moderna Inc. economic profit margin improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Moderna Inc. (NASDAQ:MRNA)

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