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.
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Mondelēz International Inc. pages available for free this week:
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Operating Profit Margin since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
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Economic Profit
Mondelēz International Inc., economic profit calculation
US$ in millions
| 12 months ended: | Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|---|
| Net operating profit after taxes (NOPAT)1 | ||||||
| Cost of capital2 | ||||||
| Invested capital3 | ||||||
| Economic profit4 | ||||||
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
= – × =
The period under review demonstrates significant fluctuations in economic profit. Net operating profit after taxes (NOPAT) exhibited volatility, beginning at US$4,733 million in 2021, declining substantially to US$3,016 million in 2022, then recovering to US$5,433 million in 2023, followed by a slight decrease to US$5,271 million in 2024, and a considerable drop to US$2,920 million in 2025. The cost of capital remained relatively stable, increasing from 8.16% in 2021 to 8.49% in 2023 before decreasing to 8.09% in 2025. Invested capital showed a modest increase between 2021 and 2022, a decrease in 2023, a further decrease in 2024, and a slight increase in 2025, remaining within a narrow range overall.
- Economic Profit Trend
- Economic profit transitioned from a negative value of US$-292 million in 2021 to a more substantial negative value of US$-2,223 million in 2022. A positive economic profit of US$212 million was achieved in 2023, which increased to US$293 million in 2024. However, economic profit again became negative in 2025, reaching US$-2,058 million. This pattern suggests a sensitivity to changes in NOPAT and, to a lesser extent, the cost of capital.
- Relationship between NOPAT and Economic Profit
- A strong correlation exists between NOPAT and economic profit. The decline in NOPAT observed in 2022 directly contributed to the largest negative economic profit during the analyzed period. Conversely, the increase in NOPAT in 2023 and 2024 corresponded with positive economic profit values. The substantial decrease in NOPAT in 2025 resulted in a significant negative economic profit.
- Cost of Capital Impact
- The cost of capital experienced a gradual increase through 2023, which likely exerted downward pressure on economic profit. The slight decrease in the cost of capital in 2024 and 2025 offered limited offset to the fluctuations in NOPAT. While the cost of capital is a factor, the magnitude of changes in NOPAT appears to have a more dominant influence on economic profit.
- Invested Capital Stability
- Invested capital remained relatively stable throughout the period, fluctuating within a range of approximately US$60 billion to US$64 billion. This suggests that changes in economic profit are primarily driven by profitability (NOPAT) and the cost of funding those investments, rather than significant shifts in the level of invested capital itself.
Net Operating Profit after Taxes (NOPAT)
Mondelēz International Inc., NOPAT calculation
US$ 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
= × =
6 2025 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= × 21.00% =
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$469 million. This suggests a changing relationship between operating profitability and overall net income.
The considerable decrease in NOPAT in 2025 warrants further investigation to determine the underlying factors contributing to this decline. The fluctuations observed throughout the period suggest sensitivity to external economic conditions or internal operational changes.
Cash Operating Taxes
Mondelēz International Inc., cash operating taxes calculation
US$ 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$182 million. This divergence suggests changes in the timing of tax payments relative to reported income, potentially due to deferred tax assets or liabilities, or differences in tax accounting versus cash accounting methods.
- Overall Trend
- Both measures experienced a peak in 2023, followed by a decline in 2024 and 2025. The 2025 values for both the provision for income taxes and cash operating taxes represent the lowest levels observed during the analyzed period. This suggests a potential reduction in taxable income or increased utilization of tax credits in the latter years.
Invested Capital
Mondelēz International Inc., invested capital calculation (financing approach)
US$ 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$25.8 billion. This suggests potential impacts from net income, dividends, and share repurchases on equity value.
- Relationship between Debt, Equity, and Invested Capital
- Invested capital is calculated as the sum of total debt and shareholders’ equity. The fluctuations in both debt and equity contribute to the observed stability in invested capital. While debt levels decreased in 2023 and 2024, equity also decreased, partially offsetting the impact on the overall invested capital figure. The increase in debt in 2025, coupled with a further decrease in equity, resulted in a modest increase in invested capital.
The observed patterns suggest a dynamic capital structure, with the company actively managing its debt and equity positions. Further investigation into the underlying drivers of these changes, such as profitability, investment activities, and financing decisions, would be necessary for a more comprehensive understanding.
Cost of Capital
Mondelēz International Inc., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Debt3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2025-12-31).
1 US$ 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 | ÷ | = | × | = | |||||||||
| Debt3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
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 | ÷ | = | × | = | |||||||||
| Debt3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
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 | ÷ | = | × | = | |||||||||
| Debt3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
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 | ÷ | = | × | = | |||||||||
| Debt3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
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 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| Economic spread ratio3 | ||||||
| Benchmarks | ||||||
| Economic Spread Ratio, Competitors4 | ||||||
| Coca-Cola Co. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
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 × ÷ =
4 Click competitor name to see calculations.
The economic spread ratio exhibited significant fluctuations between 2021 and 2025. Initially negative, the ratio transitioned to positive territory before declining substantially again. This volatility suggests inconsistent value creation over the analyzed period.
- Economic Spread Ratio
- In 2021, the economic spread ratio was -0.47%, indicating that the return on invested capital was less than the cost of capital. A substantial decrease was observed in 2022, with the ratio falling to -3.48%, signifying a widening gap between returns and costs. The ratio improved considerably in 2023, reaching 0.35%, demonstrating a shift towards value creation. This positive trend continued into 2024, with the ratio increasing to 0.49%. However, a sharp reversal occurred in 2025, as the economic spread ratio plummeted to -3.35%, returning to a level comparable to that of 2022 and indicating a significant decline in value generation.
The economic spread ratio’s movement closely mirrors the changes in economic profit. The negative economic profit values in 2021, 2022, and 2025 align with the negative economic spread ratios during those years. Conversely, the positive economic profit reported in 2023 and 2024 corresponds with the positive economic spread ratios observed in those periods.
- Invested Capital
- Invested capital remained relatively stable throughout the period, fluctuating between US$60.269 billion and US$63.833 billion. While there was a slight decrease from 2022 to 2024, the level of invested capital in 2025 returned to approximately the same level as in 2021 and 2023. This stability suggests that changes in the economic spread ratio were primarily driven by changes in economic profit, rather than significant shifts in the capital base.
The substantial decline in the economic spread ratio in 2025 warrants further investigation. Despite a relatively consistent invested capital base, the return on that capital appears to have fallen significantly below the cost of capital, resulting in substantial economic loss.
Economic Profit Margin
Mondelēz International Inc., economic profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Economic profit1 | ||||||
| Net revenues | ||||||
| Performance Ratio | ||||||
| Economic profit margin2 | ||||||
| Benchmarks | ||||||
| Economic Profit Margin, Competitors3 | ||||||
| Coca-Cola Co. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
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 × ÷ =
3 Click competitor name to see calculations.
The economic profit margin exhibited significant fluctuations between 2021 and 2025. Initial observations reveal a period of negative economic profit, followed by a brief positive margin, and a subsequent return to negative profitability. Net revenues demonstrated a consistent upward trend throughout the analyzed period, contrasting with the volatile economic profit margin.
- Economic Profit Margin
- In 2021, the economic profit margin stood at -1.02%. This metric experienced a substantial decline in 2022, reaching -7.06%. A positive margin of 0.59% was achieved in 2023, indicating improved economic profitability relative to the prior two years. The margin further increased to 0.80% in 2024. However, 2025 witnessed a sharp reversal, with the economic profit margin falling to -5.34%, representing the lowest value within the observed timeframe.
- Relationship between Net Revenues and Economic Profit Margin
- Despite consistent growth in net revenues – from US$28,720 million in 2021 to US$38,537 million in 2025 – the economic profit margin did not consistently benefit. The increase in revenues did not translate into sustained economic profit. The negative margin in 2025, despite the highest revenue figure, suggests that the cost of capital, or other factors impacting economic profit, increased at a faster rate than revenue growth.
The volatility in the economic profit margin suggests potential issues with cost management, capital allocation, or the effectiveness of revenue generation in covering the cost of capital. Further investigation into the components of economic profit – net operating profit after tax and the cost of capital – is warranted to understand the drivers behind these fluctuations.