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
Moderna Inc., economic profit calculation
US$ in millions
Based on: 10-K (reporting date: 2023-12-31), 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).
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
= -5,414 – 25.18% × 5,263 = -6,739
The financial performance over the observed five-year period is characterized by extreme volatility, featuring a dramatic surge in value creation that peaked in 2021, followed by a sharp reversal into significant value destruction by 2023.
- Net Operating Profit After Taxes (NOPAT) and Economic Profit
- A substantial upward trajectory occurred between 2019 and 2021, with NOPAT increasing from -605 million to a peak of 14,737 million. This growth drove economic profit from a deficit of -729 million in 2019 to a peak of 12,007 million in 2021. However, a severe decline followed, with economic profit falling to 1,712 million in 2022 and crashing to -6,739 million in 2023, indicating a failure to generate returns exceeding the cost of capital in the final year.
- Invested Capital
- Invested capital expanded aggressively from 481 million in 2019 to 10,693 million in 2021. After reaching this peak, a consistent contraction is observed, with invested capital decreasing to 7,126 million in 2022 and further to 5,263 million by 2023, suggesting a reduction in the operational asset base.
- Cost of Capital
- The cost of capital remained remarkably stable throughout the period, maintaining a narrow range between 25.18% and 25.81%. The lack of significant variance in this metric confirms that the swings in economic profit were driven primarily by operational volatility and capital scale rather than changes in the cost of funding.
- Economic Value Summary
- The transition from negative economic profit in 2019 to massive gains in 2021 illustrates a period of exceptional value creation. The subsequent collapse in 2023, where economic profit reached -6,739 million, demonstrates that the operating returns were insufficient to cover the capital charge, resulting in significant economic value destruction.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Net Operating Profit after Taxes (NOPAT)
Moderna Inc., NOPAT calculation
US$ in millions
Based on: 10-K (reporting date: 2023-12-31), 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).
1 Elimination of deferred tax expense. See details »
2 Addition of increase (decrease) in wholesalers chargebacks, discounts and fees.
3 Addition of increase (decrease) in deferred revenue.
4 Addition of increase (decrease) in equity equivalents to net income (loss).
5 2023 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 668 × 7.50% = 50
6 2023 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 88 × 21.00% = 19
7 Addition of after taxes interest expense to net income (loss).
8 2023 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 383 × 21.00% = 80
9 Elimination of after taxes investment income.
The financial performance between 2019 and 2023 is characterized by extreme volatility, exhibiting a parabolic trajectory in both net income and net operating profit after taxes (NOPAT). The period is marked by an initial phase of losses, a period of unprecedented growth, and a subsequent return to negative profitability.
- Net Income Trends
- Net income remained negative through 2020, with losses deepening slightly from 514 million US$ in 2019 to 747 million US$ in 2020. A sharp reversal occurred in 2021, with net income surging to 12,202 million US$. Although profitability persisted in 2022 at 8,362 million US$, a significant downturn followed in 2023, resulting in a net loss of 4,714 million US$.
- Net Operating Profit After Taxes (NOPAT) Performance
- NOPAT demonstrated a more rapid transition to profitability than net income, shifting from a loss of 605 million US$ in 2019 to a positive 3,091 million US$ in 2020. This metric peaked in 2021 at 14,737 million US$, representing the height of operational efficiency during the observed period. However, NOPAT declined precipitously to 3,520 million US$ in 2022 and collapsed to a negative 5,414 million US$ by 2023.
- Comparative Analysis of Earnings and Operational Profit
- A divergence between NOPAT and net income is most evident during the peak growth phase of 2021, where NOPAT exceeded net income by approximately 2,535 million US$, suggesting that operating performance was stronger than the final bottom-line result. Conversely, by 2023, both metrics returned to negative territory, with NOPAT showing a deeper loss than net income, indicating that the decline in core operational profitability outpaced the decline in overall net earnings.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Cash Operating Taxes
Moderna Inc., cash operating taxes calculation
US$ in millions
Based on: 10-K (reporting date: 2023-12-31), 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).
The financial data from 2019 to 2023 reveals a period of extreme volatility in tax obligations, characterized by a rapid ascent to peak liabilities followed by a sharp decline and a divergence between accrual-based provisions and actual cash outflows.
- Provision for Income Taxes Trend
- The provision for income taxes remained nominal between 2019 and 2020, moving from a benefit of US$ 1 million to an expense of US$ 3 million. A significant escalation occurred in 2021, with the provision rising to US$ 1,083 million, and peaking in 2022 at US$ 1,213 million. In 2023, this figure decreased to US$ 772 million, indicating a reduction in the estimated tax liability for the period.
- Cash Operating Taxes Trend
- Cash operating taxes followed a trajectory similar to the tax provision through 2022 but with greater magnitude. After a US$ 4 million benefit in 2019 and a minimal payment of US$ 1 million in 2020, cash taxes spiked to US$ 1,381 million in 2021 and reached a peak of US$ 1,763 million in 2022. In 2023, a reversal occurred, as cash operating taxes transitioned to a benefit of US$ 191 million.
- Comparative Analysis of Accruals and Cash Flows
- A distinct divergence between the tax provision and cash operating taxes is evident. During 2021 and 2022, cash tax payments exceeded the reported tax provisions, suggesting the settlement of prior period liabilities or a lack of deferred tax assets. This relationship inverted sharply in 2023, where the company recognized a positive tax provision of US$ 772 million while recording a negative cash tax value of US$ 191 million, signifying a substantial cash inflow or tax refund despite the reporting of a tax expense on the income statement.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Invested Capital
Moderna Inc., invested capital calculation (financing approach)
US$ in millions
Based on: 10-K (reporting date: 2023-12-31), 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).
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 equity equivalents to stockholders’ equity.
6 Removal of accumulated other comprehensive income.
7 Subtraction of construction in progress.
8 Subtraction of marketable securities.
The financial trajectory of the capital structure between 2019 and 2023 reveals a period of aggressive expansion followed by a notable contraction in the total capital employed for operations.
- Invested Capital Trends
- Invested capital exhibited a steep ascent from 481 million US$ in 2019 to a peak of 10,693 million US$ in 2021. This represents a rapid scaling of the operational base. However, a reversal occurred in 2022 and 2023, with values declining to 7,126 million US$ and 5,263 million US$, respectively, indicating a significant reduction in the net capital utilized to generate economic value in the latter part of the period.
- Debt and Lease Obligations
- Total reported debt and leases demonstrated a consistent upward trend throughout the analyzed period. Starting at 136 million US$ in 2019, obligations grew steadily each year, reaching 1,243 million US$ by December 31, 2023. Unlike invested capital, debt obligations did not experience a contraction phase, showing a sustained increase in the company's leveraged financing requirements.
- Stockholders' Equity Dynamics
- Stockholders' equity grew exponentially from 1,175 million US$ in 2019 to a peak of 19,123 million US$ in 2022. A substantial reduction followed in 2023, where equity fell to 13,854 million US$. The fact that stockholders' equity peaked in 2022 while invested capital peaked a year earlier in 2021 suggests shifts in the underlying asset base or changes in the accounting treatment of capital allocations.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Cost of Capital
Moderna Inc., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 36,855) | 36,855) | ÷ | 38,098) | = | 0.97 | 0.97 | × | 25.87% | = | 25.03% | ||
| Financing lease liabilities3 | 575) | 575) | ÷ | 38,098) | = | 0.02 | 0.02 | × | 4.20% × (1 – 21.00%) | = | 0.05% | ||
| Operating lease liability4 | 668) | 668) | ÷ | 38,098) | = | 0.02 | 0.02 | × | 7.50% × (1 – 21.00%) | = | 0.10% | ||
| Total: | 38,098) | 1.00 | 25.18% | ||||||||||
Based on: 10-K (reporting date: 2023-12-31).
1 US$ in millions
2 Equity. See details »
3 Financing lease liabilities. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 53,802) | 53,802) | ÷ | 55,002) | = | 0.98 | 0.98 | × | 25.87% | = | 25.30% | ||
| 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 | 25.37% | ||||||||||
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 »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 60,967) | 60,967) | ÷ | 61,883) | = | 0.99 | 0.99 | × | 25.87% | = | 25.49% | ||
| 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 | 25.53% | ||||||||||
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 »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 61,888) | 61,888) | ÷ | 62,126) | = | 1.00 | 1.00 | × | 25.87% | = | 25.77% | ||
| 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 | 25.81% | ||||||||||
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 »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 9,644) | 9,644) | ÷ | 9,780) | = | 0.99 | 0.99 | × | 25.87% | = | 25.51% | ||
| 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 | 25.64% | ||||||||||
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 »
Economic Spread Ratio
Moderna Inc., economic spread ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Economic profit1 | (6,739) | 1,712) | 12,007) | 2,011) | (729) | |
| Invested capital2 | 5,263) | 7,126) | 10,693) | 4,183) | 481) | |
| Performance Ratio | ||||||
| Economic spread ratio3 | -128.05% | 24.02% | 112.29% | 48.08% | -151.51% | |
| Benchmarks | ||||||
| Economic Spread Ratio, Competitors4 | ||||||
| AbbVie Inc. | -3.93% | 5.49% | 4.87% | — | — | |
| Amgen Inc. | 2.28% | 6.80% | 6.80% | — | — | |
| Bristol-Myers Squibb Co. | 1.55% | -1.21% | 1.09% | — | — | |
| Danaher Corp. | -11.64% | -6.63% | -5.80% | — | — | |
| Eli Lilly & Co. | 1.42% | 8.52% | 10.19% | — | — | |
| Gilead Sciences Inc. | 2.85% | -0.27% | 6.76% | — | — | |
| Johnson & Johnson | 0.03% | 5.29% | 10.35% | — | — | |
| Merck & Co. Inc. | -8.94% | 11.24% | 11.41% | — | — | |
| Pfizer Inc. | -9.48% | 17.97% | 11.14% | — | — | |
| Regeneron Pharmaceuticals Inc. | 13.44% | 18.80% | 62.56% | — | — | |
| Thermo Fisher Scientific Inc. | -8.72% | -6.97% | -4.95% | — | — | |
| Vertex Pharmaceuticals Inc. | 11.09% | 13.84% | 15.05% | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 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).
1 Economic profit. See details »
2 Invested capital. See details »
3 2023 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -6,739 ÷ 5,263 = -128.05%
4 Click competitor name to see calculations.
The analysis of economic value creation from 2019 to 2023 reveals a cycle of rapid expansion followed by a significant contraction in both absolute profitability and capital efficiency.
- Economic Profit Trends
- Economic profit exhibited extreme volatility over the five-year period. After starting with a deficit of US$ 729 million in 2019, a sharp upward trajectory occurred, peaking at US$ 12,007 million in 2021. However, this gain was not sustained, as profit declined to US$ 1,712 million in 2022 and fell into a substantial deficit of US$ 6,739 million by December 31, 2023.
- Invested Capital Dynamics
- Invested capital saw an aggressive increase from US$ 481 million in 2019 to a peak of US$ 10,693 million in 2021. Following this peak, a steady contraction was observed, with invested capital decreasing to US$ 7,126 million in 2022 and further declining to US$ 5,263 million by the end of 2023.
- Economic Spread Ratio Interpretation
- The economic spread ratio demonstrates a mirroring pattern to the economic profit, reflecting the efficiency of capital deployment relative to the cost of capital. The ratio moved from a deeply negative -151.51% in 2019 to a peak of 112.29% in 2021, indicating a period of exceptional value creation. The subsequent decline to 24.02% in 2022 and the final drop to -128.05% in 2023 signal that the return on invested capital has once again fallen below the required cost of capital, resulting in the destruction of economic value.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Economic Profit Margin
Moderna Inc., economic profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Economic profit1 | (6,739) | 1,712) | 12,007) | 2,011) | (729) | |
| Net product sales | 6,671) | 18,435) | 17,675) | 200) | —) | |
| Add: Increase (decrease) in deferred revenue | (2,060) | (4,157) | 2,824) | 3,842) | (72) | |
| Adjusted net product sales | 4,611) | 14,278) | 20,499) | 4,042) | (72) | |
| Performance Ratio | ||||||
| Economic profit margin2 | -146.15% | 11.99% | 58.58% | 49.76% | — | |
| Benchmarks | ||||||
| Economic Profit Margin, Competitors3 | ||||||
| AbbVie Inc. | -4.94% | 7.77% | 8.31% | — | — | |
| Amgen Inc. | 5.93% | 10.90% | 11.26% | — | — | |
| Bristol-Myers Squibb Co. | 2.33% | -1.87% | 1.88% | — | — | |
| Danaher Corp. | -38.22% | -16.48% | -14.50% | — | — | |
| Eli Lilly & Co. | 1.22% | 7.25% | 9.40% | — | — | |
| Gilead Sciences Inc. | 4.86% | -0.46% | 11.95% | — | — | |
| Johnson & Johnson | 0.03% | 6.34% | 10.83% | — | — | |
| Merck & Co. Inc. | -10.41% | 14.02% | 16.57% | — | — | |
| Pfizer Inc. | -24.66% | 19.67% | 11.89% | — | — | |
| Regeneron Pharmaceuticals Inc. | 12.26% | 18.93% | 42.30% | — | — | |
| Thermo Fisher Scientific Inc. | -17.42% | -12.85% | -10.07% | — | — | |
| Vertex Pharmaceuticals Inc. | 14.88% | 20.42% | 18.65% | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 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).
1 Economic profit. See details »
2 2023 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted net product sales
= 100 × -6,739 ÷ 4,611 = -146.15%
3 Click competitor name to see calculations.
The financial trajectory between 2019 and 2023 is characterized by a period of rapid expansion followed by a severe contraction in economic value generation.
- Economic Profit Trends
- Economic profit transitioned from a deficit of US$ 729 million in 2019 to a peak of US$ 12,007 million in 2021. This growth was followed by a precipitous decline, with profit falling to US$ 1,712 million in 2022 and collapsing to a loss of US$ 6,739 million in 2023.
- Adjusted Net Product Sales Analysis
- A parabolic trend is observed in adjusted net product sales, which rose from -US$ 72 million in 2019 to a high of US$ 20,499 million in 2021. A subsequent downward trend occurred, with sales decreasing to US$ 14,278 million in 2022 and further declining to US$ 4,611 million by December 31, 2023.
- Economic Profit Margin Dynamics
- The economic profit margin reflects extreme volatility, peaking at 58.58% in 2021, which indicates a period of maximum value creation relative to sales. A sharp deterioration followed, with the margin dropping to 11.99% in 2022 and reaching -146.15% in 2023. This final figure indicates that economic losses significantly exceeded the total adjusted net product sales for the period.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?