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
Mondelēz International Inc., economic profit calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 NOPAT. See details »
2 Cost of capital. See details »
3 Invested capital. See details »
4 2025 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 2,920 – 8.35% × 61,526 = -2,220
The financial performance regarding economic value creation shows significant volatility over the five-year period. Economic profit remained largely negative, indicating that the company struggled to generate returns consistently above its weighted average cost of capital. While a brief period of positive value creation occurred between 2023 and 2024, the overall trend concludes with a substantial decline in economic profit.
- Net Operating Profit After Taxes (NOPAT) Trends
- NOPAT exhibits extreme fluctuations, which serve as the primary driver for the volatility in economic profit. A notable decrease occurred in 2022, falling to 3,016 million US$, followed by a peak of 5,433 million US$ in 2023. However, a sharp downward trend is observed by 2025, where NOPAT dropped to 2,920 million US$, the lowest level in the analyzed period.
- Cost of Capital and Invested Capital Stability
- The cost of capital remained relatively stable, fluctuating within a narrow band between 8.35% and 8.77%. Similarly, invested capital demonstrated consistency, maintaining a range between approximately 60,269 million US$ and 63,833 million US$. The stability of these two metrics suggests that the fluctuations in economic profit are not the result of changes in the capital structure or the cost of funding, but rather due to operational performance.
- Economic Profit Analysis
- Economic profit was negative in three of the five years analyzed. The most significant value destruction occurred in 2022 and 2025, with losses of 2,395 million US$ and 2,220 million US$ respectively. A marginal recovery was observed in 2023 and 2024, where the company achieved positive economic profits of 38 million US$ and 128 million US$. This indicates that during those two years, NOPAT slightly exceeded the required return on invested capital, though the margin of value creation was thin relative to the total capital employed.
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Net Operating Profit after Taxes (NOPAT)
Mondelēz International Inc., NOPAT calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Elimination of deferred tax expense. See details »
2 Addition of increase (decrease) in allowances for credit losses.
3 Addition of increase (decrease) in restructuring Program liability.
4 Addition of increase (decrease) in equity equivalents to net earnings attributable to Mondelēz International.
5 2025 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 763 × 5.40% = 41
6 2025 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 640 × 21.00% = 134
7 Addition of after taxes interest expense to net earnings attributable to Mondelēz International.
Net operating profit after taxes (NOPAT) exhibited fluctuations over the five-year period. While net earnings attributable to Mondelēz International demonstrated volatility, NOPAT generally tracked a similar pattern, though with differing magnitudes. An initial decline was followed by a period of growth, then a subsequent decrease.
- Overall Trend
- NOPAT began at US$4,733 million in 2021, decreased to US$3,016 million in 2022, then increased significantly to US$5,433 million in 2023. This upward momentum continued, albeit at a slower pace, reaching US$5,271 million in 2024 before declining to US$2,920 million in 2025.
- Year-over-Year Changes
- The largest year-over-year decrease occurred between 2021 and 2022, with NOPAT falling by US$1,717 million. Conversely, the most substantial increase was observed between 2022 and 2023, with NOPAT rising by US$2,417 million. A moderate decrease of US$162 million was noted between 2023 and 2024, followed by a more pronounced decline of US$2,351 million between 2024 and 2025.
- Relationship to Net Earnings
- In 2021, NOPAT exceeded net earnings by US$433 million. This difference narrowed in 2022, with NOPAT exceeding net earnings by only US$299 million. In 2023, NOPAT surpassed net earnings by US$474 million. The gap widened again in 2024 to US$660 million, but then contracted significantly in 2025, with NOPAT exceeding net earnings by only US$469 million. This suggests a changing relationship between operating profitability and overall net income.
The considerable decrease in NOPAT in 2025 warrants further investigation to determine the underlying factors contributing to this decline. The fluctuations observed throughout the period suggest sensitivity to external economic conditions or internal operational changes.
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Cash Operating Taxes
Mondelēz International Inc., cash operating taxes calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The provision for income taxes and cash operating taxes exhibited fluctuating behavior between 2021 and 2025. While both metrics moved in similar directions, notable differences in magnitude and specific year-over-year changes were observed.
- Provision for Income Taxes
- The provision for income taxes decreased from US$1,190 million in 2021 to US$865 million in 2022, representing a substantial decline. This was followed by a significant increase to US$1,537 million in 2023. A further, though smaller, increase occurred in 2024, reaching US$1,469 million, before decreasing considerably to US$782 million in 2025. The volatility suggests potential impacts from changes in tax regulations, geographic earnings mix, or the recognition of tax benefits.
- Cash Operating Taxes
- Cash operating taxes demonstrated a decrease from US$1,066 million in 2021 to US$1,003 million in 2022. A marked increase was then recorded in 2023, with cash operating taxes reaching US$1,697 million. This was followed by a decrease to US$1,328 million in 2024, and a further decline to US$900 million in 2025. The pattern mirrors that of the provision for income taxes, but the absolute values are consistently lower.
- Relationship between Provision and Cash Taxes
- In 2021 and 2022, the difference between the provision for income taxes and cash operating taxes was relatively small, approximately US$124 million and US$162 million respectively. However, this difference widened significantly in 2023 to US$160 million, decreased in 2024 to US$141 million, and then increased again in 2025 to US$182 million. This divergence suggests changes in the timing of tax payments relative to reported income, potentially due to deferred tax assets or liabilities, or differences in tax accounting versus cash accounting methods.
- Overall Trend
- Both measures experienced a peak in 2023, followed by a decline in 2024 and 2025. The 2025 values for both the provision for income taxes and cash operating taxes represent the lowest levels observed during the analyzed period. This suggests a potential reduction in taxable income or increased utilization of tax credits in the latter years.
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Invested Capital
Mondelēz International Inc., invested capital calculation (financing approach)
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
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 restructuring Program liability.
5 Addition of equity equivalents to total Mondelēz International shareholders’ equity.
6 Removal of accumulated other comprehensive income.
7 Subtraction of construction in progress.
The invested capital of the company exhibited relative stability over the five-year period, with fluctuations occurring between approximately US$60.3 billion and US$63.8 billion. A slight increase is observed from 2021 to 2022, followed by a decrease in 2023, and a further decrease in 2024. The final year, 2025, shows a modest increase, returning invested capital to levels similar to those seen in 2021.
- Total Reported Debt & Leases
- Total reported debt and leases increased significantly from 2021 to 2022, rising from US$20.1 billion to US$23.6 billion. This was followed by a substantial decrease in 2023 to US$20.1 billion, and a further reduction in 2024 to US$18.5 billion. A subsequent increase is noted in 2025, reaching US$21.968 billion. This indicates active debt management and potential shifts in financing strategies.
- Total Shareholders’ Equity
- Total shareholders’ equity experienced a decrease from 2021 to 2022, moving from US$28.3 billion to US$26.9 billion. It then increased in 2023 to US$28.3 billion, before decreasing again in 2024 to US$26.9 billion, and finally declining further in 2025 to US$25.8 billion. This suggests potential impacts from net income, dividends, and share repurchases on equity value.
- Relationship between Debt, Equity, and Invested Capital
- Invested capital is calculated as the sum of total debt and shareholders’ equity. The fluctuations in both debt and equity contribute to the observed stability in invested capital. While debt levels decreased in 2023 and 2024, equity also decreased, partially offsetting the impact on the overall invested capital figure. The increase in debt in 2025, coupled with a further decrease in equity, resulted in a modest increase in invested capital.
The observed patterns suggest a dynamic capital structure, with the company actively managing its debt and equity positions. Further investigation into the underlying drivers of these changes, such as profitability, investment activities, and financing decisions, would be necessary for a more comprehensive understanding.
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Cost of Capital
Mondelēz International Inc., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 76,142) | 76,142) | ÷ | 96,458) | = | 0.79 | 0.79 | × | 10.00% | = | 7.89% | ||
| Debt3 | 19,553) | 19,553) | ÷ | 96,458) | = | 0.20 | 0.20 | × | 2.68% × (1 – 21.00%) | = | 0.43% | ||
| Operating lease liability4 | 763) | 763) | ÷ | 96,458) | = | 0.01 | 0.01 | × | 5.40% × (1 – 21.00%) | = | 0.03% | ||
| Total: | 96,458) | 1.00 | 8.35% | ||||||||||
Based on: 10-K (reporting date: 2025-12-31).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 74,287) | 74,287) | ÷ | 90,928) | = | 0.82 | 0.82 | × | 10.00% | = | 8.17% | ||
| Debt3 | 15,846) | 15,846) | ÷ | 90,928) | = | 0.17 | 0.17 | × | 2.38% × (1 – 21.00%) | = | 0.33% | ||
| Operating lease liability4 | 795) | 795) | ÷ | 90,928) | = | 0.01 | 0.01 | × | 5.50% × (1 – 21.00%) | = | 0.04% | ||
| Total: | 90,928) | 1.00 | 8.53% | ||||||||||
Based on: 10-K (reporting date: 2024-12-31).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 103,504) | 103,504) | ÷ | 121,712) | = | 0.85 | 0.85 | × | 10.00% | = | 8.50% | ||
| Debt3 | 17,506) | 17,506) | ÷ | 121,712) | = | 0.14 | 0.14 | × | 2.19% × (1 – 21.00%) | = | 0.25% | ||
| Operating lease liability4 | 702) | 702) | ÷ | 121,712) | = | 0.01 | 0.01 | × | 5.10% × (1 – 21.00%) | = | 0.02% | ||
| Total: | 121,712) | 1.00 | 8.77% | ||||||||||
Based on: 10-K (reporting date: 2023-12-31).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 89,856) | 89,856) | ÷ | 110,753) | = | 0.81 | 0.81 | × | 10.00% | = | 8.11% | ||
| Debt3 | 20,217) | 20,217) | ÷ | 110,753) | = | 0.18 | 0.18 | × | 2.40% × (1 – 21.00%) | = | 0.35% | ||
| Operating lease liability4 | 680) | 680) | ÷ | 110,753) | = | 0.01 | 0.01 | × | 4.20% × (1 – 21.00%) | = | 0.02% | ||
| Total: | 110,753) | 1.00 | 8.48% | ||||||||||
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 »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 93,046) | 93,046) | ÷ | 113,928) | = | 0.82 | 0.82 | × | 10.00% | = | 8.16% | ||
| Debt3 | 20,249) | 20,249) | ÷ | 113,928) | = | 0.18 | 0.18 | × | 1.82% × (1 – 21.00%) | = | 0.26% | ||
| Operating lease liability4 | 633) | 633) | ÷ | 113,928) | = | 0.01 | 0.01 | × | 3.30% × (1 – 21.00%) | = | 0.01% | ||
| Total: | 113,928) | 1.00 | 8.43% | ||||||||||
Based on: 10-K (reporting date: 2021-12-31).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
Economic Spread Ratio
Mondelēz International Inc., economic spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Economic profit1 | (2,220) | 128) | 38) | (2,395) | (459) | |
| Invested capital2 | 61,526) | 60,269) | 61,495) | 63,833) | 61,560) | |
| Performance Ratio | ||||||
| Economic spread ratio3 | -3.61% | 0.21% | 0.06% | -3.75% | -0.75% | |
| Benchmarks | ||||||
| Economic Spread Ratio, Competitors4 | ||||||
| Coca-Cola Co. | 6.13% | 3.67% | 4.16% | 3.86% | 5.39% | |
| PepsiCo Inc. | 2.89% | 5.47% | 4.39% | 4.37% | 4.92% | |
| Philip Morris International Inc. | 13.29% | 8.32% | 8.97% | 11.92% | 26.26% | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Economic profit. See details »
2 Invested capital. See details »
3 2025 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -2,220 ÷ 61,526 = -3.61%
4 Click competitor name to see calculations.
The analysis of economic value addition reveals a volatile performance trend characterized by significant fluctuations in value creation and destruction over the five-year period.
- Economic Profit Volatility
- Economic profit exhibits extreme instability, beginning with a deficit of US$ 459 million in 2021 and deteriorating sharply to US$ 2,395 million in 2022. A brief recovery period occurred between 2023 and 2024, during which the company achieved positive economic profits of US$ 38 million and US$ 128 million, respectively. This upward trend was reversed in 2025, with economic profit falling back to a substantial deficit of US$ 2,220 million.
- Invested Capital Consistency
- Invested capital remained relatively stable throughout the period, with values oscillating between a high of US$ 63,833 million in 2022 and a low of US$ 60,269 million in 2024. The stability of the capital base indicates that the fluctuations in economic profit are a result of changes in operating performance or the cost of capital rather than significant changes in the scale of investment.
- Economic Spread Ratio Patterns
- The economic spread ratio closely tracks the movements of economic profit, confirming that the return on invested capital frequently fell below the cost of capital. A significant negative spread of -3.75% was recorded in 2022, representing the period of greatest value destruction. Although the ratio shifted to positive territory in 2023 (0.06%) and 2024 (0.21%), indicating marginal value creation, the ratio returned to a sharp negative of -3.61% in 2025.
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Economic Profit Margin
Mondelēz International Inc., economic profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Economic profit1 | (2,220) | 128) | 38) | (2,395) | (459) | |
| Net revenues | 38,537) | 36,441) | 36,016) | 31,496) | 28,720) | |
| Performance Ratio | ||||||
| Economic profit margin2 | -5.76% | 0.35% | 0.10% | -7.61% | -1.60% | |
| Benchmarks | ||||||
| Economic Profit Margin, Competitors3 | ||||||
| Coca-Cola Co. | 11.88% | 6.77% | 7.60% | 7.17% | 11.19% | |
| PepsiCo Inc. | 2.56% | 4.57% | 3.61% | 3.51% | 4.33% | |
| Philip Morris International Inc. | 17.44% | 10.61% | 13.10% | 17.78% | 24.38% | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Economic profit. See details »
2 2025 Calculation
Economic profit margin = 100 × Economic profit ÷ Net revenues
= 100 × -2,220 ÷ 38,537 = -5.76%
3 Click competitor name to see calculations.
The financial performance over the period from 2021 to 2025 is characterized by a consistent expansion in top-line revenue contrasted with significant volatility in economic value creation. While net revenues exhibited a steady upward trajectory, the economic profit margin fluctuated between negative and marginally positive territory, indicating inconsistent ability to generate returns above the cost of capital.
- Revenue Growth Trends
- Net revenues grew consistently throughout the analyzed period, increasing from US$ 28,720 million in 2021 to US$ 38,537 million by 2025. This represents a sustained increase in market scale or pricing power over the five-year horizon.
- Economic Profit Volatility
- Economic profit demonstrated a highly unstable pattern. After a deficit of US$ 459 million in 2021, the loss widened substantially to US$ 2,395 million in 2022. A recovery phase occurred in 2023 and 2024, where the company achieved positive economic profits of US$ 38 million and US$ 128 million, respectively. However, this trend reversed sharply in 2025, with economic profit falling to negative US$ 2,220 million.
- Economic Profit Margin Analysis
- The economic profit margin mirrored the volatility of the absolute economic profit. A significant contraction was noted in 2022, reaching a low of -7.61%. The margin improved to a marginal positive state in 2023 (0.10%) and 2024 (0.35%), suggesting a brief period where operational returns exceeded the weighted average cost of capital. The period concluded with a substantial decline in 2025, with the margin dropping to -5.76%.
The divergence between increasing net revenues and the erratic movement of the economic profit margin suggests that revenue growth has not consistently translated into economic value addition. The sharp declines in 2022 and 2025 indicate periods where the cost of capital significantly outweighed the net operating profit after tax, despite the growth in the overall scale of operations.
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