Economic Value Added (EVA)
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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.
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- Statement of Comprehensive Income
- Common-Size Balance Sheet: Assets
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Dividend Discount Model (DDM)
- Operating Profit Margin since 2005
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Revenues
- Analysis of Debt
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Economic Profit
Regeneron Pharmaceuticals Inc., economic profit calculation
US$ in thousands
| 12 months ended: | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|---|
| Net operating profit after taxes (NOPAT)1 | ||||||
| Cost of capital2 | ||||||
| Invested capital3 | ||||||
| Economic profit4 | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 NOPAT. See details »
2 Cost of capital. See details »
3 Invested capital. See details »
4 2024 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= – × =
- Net Operating Profit After Taxes (NOPAT)
- The net operating profit after taxes exhibited significant fluctuations over the analyzed period. It increased markedly from approximately 3.7 billion USD in 2020 to nearly 7.8 billion USD in 2021, reflecting a strong upward trend. However, a sharp decline followed in 2022, dropping to about 3.5 billion USD and further decreasing to 2.8 billion USD in 2023. By 2024, NOPAT shows a modest recovery, rising to approximately 3.4 billion USD.
- Cost of Capital
- The cost of capital remained relatively stable throughout the period, displaying a slight upward trend from 5.35% in 2020 to 5.47% in 2023, before marginally decreasing to 5.45% in 2024. This stability suggests consistent capital market conditions and a steady risk profile in the evaluated timeframe.
- Invested Capital
- Invested capital demonstrated a clear upward trajectory. Starting at approximately 8.4 billion USD in 2020, it rose to nearly 10.8 billion USD in 2021, then continued to increase to about 12.3 billion USD in 2022. Despite a slight dip to 12 billion USD in 2023, invested capital reached its peak at around 12.7 billion USD by 2024. This pattern indicates ongoing investment and resource commitment into the company’s operations.
- Economic Profit
- Economic profit closely mirrors the fluctuations observed in NOPAT, indicating its sensitivity to operating performance. After peaking at approximately 7.2 billion USD in 2021, economic profit declined significantly in subsequent years to 2.9 billion USD in 2022, dropping further to 2.2 billion USD in 2023. By 2024, economic profit improved modestly to around 2.7 billion USD. Despite the downturn, economic profit remains positive across all periods, reflecting value creation beyond the cost of capital.
Net Operating Profit after Taxes (NOPAT)
Regeneron Pharmaceuticals Inc., NOPAT calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2020-12-31).
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.
4 2024 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= × =
5 2024 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= × 21.00% =
6 Addition of after taxes interest expense to net income.
7 2024 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= × 21.00% =
8 Elimination of after taxes investment income.
- Net Income Trend
- The net income exhibited significant volatility over the five-year period. It increased markedly from approximately $3.51 billion in 2020 to a peak of $8.08 billion in 2021. However, in the subsequent years, net income declined sharply to about $4.34 billion in 2022 and further declined to $3.95 billion in 2023. There was a moderate recovery observed in 2024, with net income increasing to roughly $4.41 billion.
- Net Operating Profit After Taxes (NOPAT) Trend
- The NOPAT also showed a similar pattern of fluctuation. Starting at approximately $3.70 billion in 2020, it rose significantly to around $7.82 billion in 2021. After this peak, NOPAT experienced a marked decrease to about $3.55 billion in 2022, continuing its downward trend to approximately $2.82 billion in 2023. A slight improvement is noted in 2024, where NOPAT increased to nearly $3.37 billion.
- Comparative Analysis Between Net Income and NOPAT
- Both net income and NOPAT followed parallel trajectories, with substantial growth in 2021 followed by pronounced declines in 2022 and 2023, and moderate recovery in 2024. Notably, the decline in NOPAT after 2021 was somewhat steeper than the decline in net income, particularly between 2022 and 2023. Despite the fluctuations, net income consistently remained slightly lower than NOPAT throughout the period, indicating possible differences in non-operating income, expenses, or tax effects.
- General Insights
- The data reveals a peak in profitability metrics in 2021, suggestive of exceptional performance or favorable conditions during that year. The subsequent deterioration through 2022 and 2023 may imply operational challenges, increased expenses, or adverse market conditions impacting operational efficiency and profitability. The modest rebound in 2024 suggests some recovery, though neither net income nor NOPAT returned to the peak levels observed in 2021.
Cash Operating Taxes
Regeneron Pharmaceuticals Inc., cash operating taxes calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2020-12-31).
The financial data reveals notable fluctuations in tax-related expenses over the five-year period under review. Income tax expense and cash operating taxes show varying trends that indicate changes in the company’s profitability, tax strategies, or regulatory environment impacts.
- Income Tax Expense
- This item increased substantially from 297,200 thousand US dollars in 2020 to a peak of 1,250,500 thousand US dollars in 2021, representing a more than fourfold increase. The subsequent years show a marked decrease to 520,400 thousand US dollars in 2022 and further declines to 245,700 thousand US dollars in 2023. In 2024, there was a modest recovery to 367,300 thousand US dollars. These changes suggest significant variations in taxable income or effective tax rates year over year.
- Cash Operating Taxes
- Cash operating taxes exhibit a different pattern. Starting at 212,370 thousand US dollars in 2020, these taxes surge to 1,400,760 thousand US dollars in 2021, exceeding the income tax expense increase, which may indicate timing differences or adjustments in tax payments versus accruals. Unlike income tax expense, cash operating taxes peaked in 2022 at 1,246,398 thousand US dollars, only slightly decreasing thereafter to 995,682 thousand US dollars in 2023 and stabilizing around 989,515 thousand US dollars in 2024. This suggests that cash payments for taxes remained relatively high and steady after the initial spike in 2021.
Overall, the data points to a significant tax-related financial impact in 2021 followed by a normalization trend in subsequent years, though cash operating taxes remained at elevated levels compared to 2020. The divergence between income tax expense and cash operating taxes in later years could reflect changes in deferred tax assets or liabilities, timing differences, or tax planning strategies.
Invested Capital
Regeneron Pharmaceuticals Inc., invested capital calculation (financing approach)
US$ in thousands
Based on: 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), 10-K (reporting date: 2020-12-31).
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.
- Total Reported Debt & Leases
- The total reported debt and leases remained relatively stable from 2020 to 2023, fluctuating slightly around the 2.76 to 2.79 billion US dollars range. In 2024, there was a noticeable increase to approximately 2.94 billion, indicating a rise in the company's leverage or financing obligations during that year.
- Stockholders’ Equity
- Stockholders’ equity showed a strong and consistent upward trend across the entire period. Starting at about 11.03 billion in 2020, it increased significantly each year, reaching nearly 29.35 billion by the end of 2024. This growth suggests robust retained earnings and possibly additional equity financing, reflecting an overall strengthening in the company’s net worth and financial position.
- Invested Capital
- Invested capital experienced growth from 8.42 billion in 2020 to a peak of approximately 12.29 billion in 2022. However, a decline followed in 2023, dropping to about 12.00 billion, before rising again to roughly 12.65 billion in 2024. This pattern indicates a moderate fluctuation in the capital deployed within the business, which could be related to changes in assets or operational investments during the period.
Cost of Capital
Regeneron Pharmaceuticals Inc., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Long-term debt and finance lease liabilities3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2024-12-31).
1 US$ in thousands
2 Equity. See details »
3 Long-term debt and finance lease liabilities. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Long-term debt and finance lease liabilities3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2023-12-31).
1 US$ in thousands
2 Equity. See details »
3 Long-term debt and finance lease liabilities. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Long-term debt and finance lease liabilities3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2022-12-31).
1 US$ in thousands
2 Equity. See details »
3 Long-term debt and finance lease liabilities. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Long-term debt and finance lease liabilities3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2021-12-31).
1 US$ in thousands
2 Equity. See details »
3 Long-term debt and finance lease liabilities. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Long-term debt and finance lease liabilities3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2020-12-31).
1 US$ in thousands
2 Equity. See details »
3 Long-term debt and finance lease liabilities. See details »
4 Operating lease liability. See details »
Economic Spread Ratio
Regeneron Pharmaceuticals Inc., economic spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Economic profit1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| Economic spread ratio3 | ||||||
| Benchmarks | ||||||
| Economic Spread Ratio, Competitors4 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Economic profit. See details »
2 Invested capital. See details »
3 2024 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Economic Profit Trends
- The economic profit exhibited significant fluctuations over the observed periods. It nearly doubled from 3,251,464 thousand US dollars in 2020 to a peak of 7,238,065 thousand US dollars in 2021. Subsequently, it declined sharply to 2,876,780 thousand US dollars in 2022, followed by further decreases in 2023 to 2,166,829 thousand US dollars. In 2024, there was a moderate recovery to 2,685,308 thousand US dollars, indicating some stabilization after the prior declines.
- Invested Capital Trends
- The invested capital showed a generally increasing trajectory throughout the period. Starting at 8,423,300 thousand US dollars in 2020, it rose steadily each year to reach 12,653,600 thousand US dollars by the end of 2024. Despite a slight decline in 2023 compared to the previous year, the overall trend indicates growth in the capital base deployed.
- Economic Spread Ratio Analysis
- The economic spread ratio, a key indicator of profitability relative to invested capital, demonstrated a volatile pattern. It surged from 38.6% in 2020 to a high of 67.1% in 2021, reflecting enhanced returns on invested capital. This was followed by a marked decrease to 23.41% in 2022 and further reductions to 18.06% in 2023. In 2024, the ratio showed a partial recovery to 21.22%, suggesting some improvement in capital efficiency though below the earlier peak values.
- Overall Observations
- The data indicate a peak in economic profitability in the year 2021, with both economic profit and economic spread ratio reaching their highest points. Since then, there has been a downward trend in profitability metrics despite continued growth in invested capital. The partial recovery in 2024 suggests efforts to regain efficiency and profitability. The growing invested capital alongside fluctuating economic profit signals potential challenges in capital utilization and return generation during the latter years.
Economic Profit Margin
Regeneron Pharmaceuticals Inc., economic profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Economic profit1 | ||||||
| Revenues | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted revenues | ||||||
| Performance Ratio | ||||||
| Economic profit margin2 | ||||||
| Benchmarks | ||||||
| Economic Profit Margin, Competitors3 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Economic profit. See details »
2 2024 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
- Economic Profit
- The economic profit demonstrated significant volatility during the observed period. Starting from approximately 3.25 billion US dollars in 2020, it peaked in 2021 at around 7.24 billion US dollars. However, this was followed by a sharp decline to nearly 2.88 billion in 2022 and a further decrease to 2.17 billion in 2023. In 2024, economic profit showed some recovery, rising to about 2.69 billion US dollars. This pattern indicates substantial fluctuations, with the highest level reached in 2021 and a partial rebound after two consecutive years of decline.
- Adjusted Revenues
- Adjusted revenues experienced considerable growth from 2020 to 2021, increasing from approximately 8.65 billion to 15.95 billion US dollars. Following this sharp rise, revenues declined to 12.21 billion in 2022 before gradually increasing again in subsequent years, reaching 13.16 billion in 2023 and 14.43 billion US dollars in 2024. Overall, despite a dip in 2022, the trend reflects a generally upward movement with a peak in 2021 and a steady recovery afterward.
- Economic Profit Margin
- The economic profit margin, which measures economic profit as a percentage of adjusted revenues, also showed significant variability. It increased from 37.61% in 2020 to a high of 45.38% in 2021, highlighting a period of strong profitability. Subsequently, the margin contracted sharply to 23.57% in 2022 and continued to decrease to 16.47% in 2023. In 2024, the margin rose slightly to 18.61%, reflecting limited improvement but still remaining well below the peak values of prior years. This indicates reduced profitability efficiency relative to the revenue base after 2021.
- Summary of Trends
- Across the analyzed period, the company experienced a peak in economic profit and profitability margins in 2021, with adjusted revenues also reaching their highest level. The years 2022 and 2023 were marked by pronounced declines in economic profit and margins, alongside a dip in revenues. A moderate recovery phase began in 2023 and continued into 2024, with revenue growth and a modest increase in economic profit and margins. Overall, the financial metrics suggest a period of expansion followed by contraction and a partial rebound in recent years.