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
Regeneron Pharmaceuticals Inc., economic profit calculation
US$ in thousands
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
= 3,147,470 – 9.81% × 13,198,700 = 1,852,100
An analysis of the economic value added (EVA) indicates a significant contraction in value creation between 2021 and 2025, primarily driven by a substantial decline in net operating profit after taxes (NOPAT). While the organization continues to generate positive economic profit, the magnitude of this surplus has decreased considerably from its 2021 peak.
- Net Operating Profit After Taxes (NOPAT) Trends
- A sharp decline in NOPAT is observed starting in 2022, falling from 7,819,887 thousand US$ in 2021 to 3,547,649 thousand US$. This downward trajectory continued into 2023, reaching a period low of 2,823,336 thousand US$. A partial recovery occurred in 2024 before a slight correction in 2025, suggesting a stabilization of operating profitability at a level significantly lower than the 2021 baseline.
- Invested Capital and Cost of Capital Dynamics
- Invested capital exhibits a general upward trend, increasing from 10,786,500 thousand US$ in 2021 to 13,198,700 thousand US$ by 2025. Concurrently, the cost of capital has remained remarkably stable, fluctuating within a narrow range between 9.73% and 9.88%. The steady increase in the capital base, paired with a constant cost of capital percentage, has resulted in a higher absolute capital charge over the analyzed period.
- Economic Profit Performance
- Economic profit mirrors the volatility of NOPAT, experiencing a precipitous drop from 6,770,642 thousand US$ in 2021 to 1,638,308 thousand US$ in 2023. Despite the increase in invested capital, the entity has maintained a positive economic profit through 2025, indicating that the returns on invested capital still exceed the cost of capital. However, the capacity for value creation has diminished, with the 2025 economic profit of 1,852,100 thousand US$ representing a fraction of the value generated in 2021.
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Net Operating Profit after Taxes (NOPAT)
Regeneron Pharmaceuticals Inc., NOPAT calculation
US$ in thousands
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 deferred revenue.
3 Addition of increase (decrease) in equity equivalents to net income.
4 2025 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 266,800 × 5.38% = 14,354
5 2025 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 58,154 × 21.00% = 12,212
6 Addition of after taxes interest expense to net income.
7 2025 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 716,800 × 21.00% = 150,528
8 Elimination of after taxes investment income.
The financial performance, as indicated by Net Income and Net Operating Profit After Taxes (NOPAT), demonstrates considerable fluctuation over the five-year period. A significant decline in both metrics is observed between 2021 and 2023, followed by a partial recovery in subsequent years.
- NOPAT Trend
- NOPAT experienced a substantial decrease from US$7,819,887 thousand in 2021 to US$2,823,336 thousand in 2023, representing a decline of approximately 64%. This suggests a weakening in core operational profitability. A subsequent increase to US$3,374,924 thousand in 2024 indicates some recovery, but NOPAT decreased again in 2025 to US$3,147,470 thousand, suggesting the recovery may not be sustained.
- Relationship between Net Income and NOPAT
- While both Net Income and NOPAT follow a similar pattern of decline and partial recovery, NOPAT consistently represents a larger value than Net Income. This difference could be attributed to factors not reflected in net income, such as non-operating expenses or gains, or differences in accounting treatment. The gap between the two metrics appears relatively stable throughout the period.
The observed volatility in NOPAT warrants further investigation to determine the underlying drivers. Potential areas of inquiry include changes in revenue, cost of goods sold, operating expenses, and tax rates. The decrease in 2025, following the 2024 increase, suggests potential challenges in maintaining operational efficiency or market position.
- Overall Performance
- The period under review demonstrates a period of instability. While the company shows some ability to recover from the low point in 2023, the performance in 2025 indicates that the recovery may be limited. Continued monitoring of NOPAT and its contributing factors is recommended.
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Cash Operating Taxes
Regeneron Pharmaceuticals Inc., cash operating taxes calculation
US$ in thousands
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 relationship between income tax expense and cash operating taxes demonstrates notable fluctuations over the five-year period. Cash operating taxes generally exceed income tax expense, suggesting timing differences between reported accounting income and actual cash outflows for taxes.
- Overall Trend - Cash Operating Taxes
- Cash operating taxes exhibit a decreasing trend from 2021 to 2023, followed by a slight increase in 2024 and a more substantial rise in 2025. The value decreased from US$1,400,760 thousand in 2021 to US$995,682 thousand in 2023, representing a 28.9% decline. A modest increase to US$989,515 thousand occurred in 2024, before a significant jump to US$1,372,884 thousand in 2025.
- Overall Trend - Income Tax Expense
- Income tax expense shows a significant decrease from 2021 to 2022, followed by continued declines through 2023, a slight increase in 2024, and a further increase in 2025. The value fell from US$1,250,500 thousand in 2021 to US$245,700 thousand in 2023, a decrease of 80.3%. An increase to US$367,300 thousand was observed in 2024, and a further increase to US$725,800 thousand in 2025.
- Relationship Between Tax Items
- The difference between cash operating taxes and income tax expense varied considerably. In 2021, cash operating taxes exceeded income tax expense by US$150,260 thousand. This difference narrowed in 2022 to US$725,998 thousand. By 2023, cash operating taxes exceeded income tax expense by US$750,000 thousand. The difference decreased to US$622,115 thousand in 2024, and then increased to US$647,084 thousand in 2025. This suggests that deferred tax assets or liabilities are playing a significant role in the company’s tax position.
The substantial fluctuations in both income tax expense and cash operating taxes warrant further investigation to understand the underlying drivers, such as changes in tax laws, the utilization of tax credits, or alterations in the company’s accounting practices related to deferred taxes. The increasing trend in both measures in 2025 suggests a potential increase in future tax liabilities.
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Invested Capital
Regeneron Pharmaceuticals Inc., invested capital calculation (financing approach)
US$ in thousands
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 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.
The invested capital of the organization demonstrates a generally increasing trend over the five-year period, although with some fluctuation. Total reported debt & leases and stockholders’ equity both contribute to this figure, and their individual movements influence the overall invested capital.
- Invested Capital Trend
- Invested capital increased from US$10,786,500 thousand in 2021 to US$12,287,700 thousand in 2022, representing a substantial rise. A decrease was then observed in 2023, with invested capital falling to US$11,998,500 thousand. Subsequent years show renewed growth, reaching US$12,653,600 thousand in 2024 and US$13,198,700 thousand in 2025. This suggests periods of capital investment followed by potential adjustments or reallocations.
- Debt & Leases
- Total reported debt & leases exhibits a consistent, albeit moderate, upward trend throughout the period. Starting at US$2,767,900 thousand in 2021, it increases to US$2,972,700 thousand in 2025. The increases are relatively steady year-over-year, indicating a consistent reliance on debt financing.
- Stockholders’ Equity
- Stockholders’ equity demonstrates a strong and consistent upward trend. It increased significantly from US$18,768,800 thousand in 2021 to US$31,256,900 thousand in 2025. This growth suggests successful earnings retention and/or new equity issuance, contributing significantly to the overall increase in invested capital.
- Relationship between Components
- While both debt & leases and stockholders’ equity contribute to invested capital, stockholders’ equity represents the larger portion and drives the majority of the overall trend. The relatively smaller increases in debt & leases are overshadowed by the substantial growth in equity. The dip in invested capital in 2023 appears to be influenced by a combination of factors, including a slight decrease in equity growth and the impact of debt levels.
In summary, the organization’s invested capital has generally increased over the observed period, primarily driven by growth in stockholders’ equity. Debt & leases have also increased, but to a lesser extent. The fluctuation in invested capital in 2023 warrants further investigation to understand the underlying causes.
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Cost of Capital
Regeneron Pharmaceuticals Inc., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 81,939,193) | 81,939,193) | ÷ | 84,501,993) | = | 0.97 | 0.97 | × | 10.05% | = | 9.74% | ||
| Long-term debt and finance lease liabilities3 | 2,296,000) | 2,296,000) | ÷ | 84,501,993) | = | 0.03 | 0.03 | × | 2.74% × (1 – 21.00%) | = | 0.06% | ||
| Operating lease liability4 | 266,800) | 266,800) | ÷ | 84,501,993) | = | 0.00 | 0.00 | × | 5.38% × (1 – 21.00%) | = | 0.01% | ||
| Total: | 84,501,993) | 1.00 | 9.81% | ||||||||||
Based on: 10-K (reporting date: 2025-12-31).
1 US$ 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 | 78,355,186) | 78,355,186) | ÷ | 80,793,586) | = | 0.97 | 0.97 | × | 10.05% | = | 9.74% | ||
| Long-term debt and finance lease liabilities3 | 2,204,000) | 2,204,000) | ÷ | 80,793,586) | = | 0.03 | 0.03 | × | 2.91% × (1 – 21.00%) | = | 0.06% | ||
| Operating lease liability4 | 234,400) | 234,400) | ÷ | 80,793,586) | = | 0.00 | 0.00 | × | 5.52% × (1 – 21.00%) | = | 0.01% | ||
| Total: | 80,793,586) | 1.00 | 9.82% | ||||||||||
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 | 102,773,356) | 102,773,356) | ÷ | 105,109,056) | = | 0.98 | 0.98 | × | 10.05% | = | 9.82% | ||
| Long-term debt and finance lease liabilities3 | 2,248,000) | 2,248,000) | ÷ | 105,109,056) | = | 0.02 | 0.02 | × | 2.92% × (1 – 21.00%) | = | 0.05% | ||
| Operating lease liability4 | 87,700) | 87,700) | ÷ | 105,109,056) | = | 0.00 | 0.00 | × | 5.38% × (1 – 21.00%) | = | 0.00% | ||
| Total: | 105,109,056) | 1.00 | 9.88% | ||||||||||
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 | 85,367,935) | 85,367,935) | ÷ | 87,599,135) | = | 0.97 | 0.97 | × | 10.05% | = | 9.79% | ||
| Long-term debt and finance lease liabilities3 | 2,163,000) | 2,163,000) | ÷ | 87,599,135) | = | 0.02 | 0.02 | × | 2.86% × (1 – 21.00%) | = | 0.06% | ||
| Operating lease liability4 | 68,200) | 68,200) | ÷ | 87,599,135) | = | 0.00 | 0.00 | × | 5.20% × (1 – 21.00%) | = | 0.00% | ||
| Total: | 87,599,135) | 1.00 | 9.85% | ||||||||||
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 | 67,550,508) | 67,550,508) | ÷ | 70,225,408) | = | 0.96 | 0.96 | × | 10.05% | = | 9.66% | ||
| Long-term debt and finance lease liabilities3 | 2,606,700) | 2,606,700) | ÷ | 70,225,408) | = | 0.04 | 0.04 | × | 2.02% × (1 – 21.00%) | = | 0.06% | ||
| Operating lease liability4 | 68,200) | 68,200) | ÷ | 70,225,408) | = | 0.00 | 0.00 | × | 5.20% × (1 – 21.00%) | = | 0.00% | ||
| Total: | 70,225,408) | 1.00 | 9.73% | ||||||||||
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 »
Economic Spread Ratio
Regeneron Pharmaceuticals 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 thousands) | ||||||
| Economic profit1 | 1,852,100) | 2,132,468) | 1,638,308) | 2,337,318) | 6,770,642) | |
| Invested capital2 | 13,198,700) | 12,653,600) | 11,998,500) | 12,287,700) | 10,786,500) | |
| Performance Ratio | ||||||
| Economic spread ratio3 | 14.03% | 16.85% | 13.65% | 19.02% | 62.77% | |
| Benchmarks | ||||||
| Economic Spread Ratio, Competitors4 | ||||||
| AbbVie Inc. | 0.92% | -2.01% | -3.73% | 5.69% | 5.05% | |
| Amgen Inc. | 6.40% | -0.40% | 2.41% | 6.95% | 6.94% | |
| Bristol-Myers Squibb Co. | 5.87% | -21.81% | 1.75% | -0.98% | 1.30% | |
| Danaher Corp. | -10.74% | -10.91% | -11.68% | -6.67% | -5.84% | |
| Eli Lilly & Co. | 30.38% | 14.72% | 1.65% | 8.75% | 10.41% | |
| Gilead Sciences Inc. | 12.83% | -10.26% | 3.05% | -0.07% | 6.93% | |
| Johnson & Johnson | 11.78% | 2.11% | 0.26% | 5.52% | 10.59% | |
| Merck & Co. Inc. | 10.74% | 13.62% | -8.67% | 11.51% | 11.65% | |
| Pfizer Inc. | -3.56% | -3.24% | -9.35% | 18.13% | 11.30% | |
| Thermo Fisher Scientific Inc. | -7.48% | -8.28% | -8.75% | -7.00% | -4.98% | |
| Vertex Pharmaceuticals Inc. | 21.07% | -22.58% | 11.36% | 14.11% | 15.32% | |
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 × 1,852,100 ÷ 13,198,700 = 14.03%
4 Click competitor name to see calculations.
An analysis of the company's economic performance from 2021 to 2025 reveals a significant contraction in economic value generation, characterized by a sharp decline in the economic spread ratio and overall economic profit despite a general increase in invested capital.
- Economic Spread Ratio Trends
- A substantial decline in the economic spread ratio is observed between 2021 and 2023, falling from a peak of 62.77% to a low of 13.65%. While a marginal recovery occurred in 2024, reaching 16.85%, the ratio declined again to 14.03% by 2025. This pattern indicates a marked reduction in the spread between the return on invested capital and the cost of capital over the five-year period.
- Economic Profit Performance
- Economic profit mirrored the downward trajectory of the spread ratio. A peak value of 6,770,642 thousand US$ in 2021 decreased sharply to 2,337,318 thousand US$ in 2022 and further contracted to 1,638,308 thousand US$ in 2023. A temporary increase to 2,132,468 thousand US$ was recorded in 2024, followed by a decline to 1,852,100 thousand US$ in 2025.
- Invested Capital Dynamics
- Invested capital demonstrated a general upward trend, growing from 10,786,500 thousand US$ in 2021 to 13,198,700 thousand US$ in 2025. The divergence between the expansion of the capital base and the reduction in economic profit suggests a diminishing efficiency in capital deployment and a weakening of the company's ability to generate value above its cost of capital.
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Economic Profit Margin
Regeneron Pharmaceuticals 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 thousands) | ||||||
| Economic profit1 | 1,852,100) | 2,132,468) | 1,638,308) | 2,337,318) | 6,770,642) | |
| Revenues | 14,342,900) | 14,202,000) | 13,117,200) | 12,172,900) | 16,071,700) | |
| Add: Increase (decrease) in deferred revenue | (51,700) | 227,800) | 37,900) | 32,400) | (120,200) | |
| Adjusted revenues | 14,291,200) | 14,429,800) | 13,155,100) | 12,205,300) | 15,951,500) | |
| Performance Ratio | ||||||
| Economic profit margin2 | 12.96% | 14.78% | 12.45% | 19.15% | 42.45% | |
| Benchmarks | ||||||
| Economic Profit Margin, Competitors3 | ||||||
| AbbVie Inc. | 0.93% | -2.48% | -4.68% | 8.04% | 8.62% | |
| Amgen Inc. | 10.67% | -0.79% | 6.28% | 11.14% | 11.50% | |
| Bristol-Myers Squibb Co. | 7.22% | -28.29% | 2.63% | -1.52% | 2.25% | |
| Danaher Corp. | -32.92% | -33.67% | -38.34% | -16.57% | -14.59% | |
| Eli Lilly & Co. | 23.12% | 11.70% | 1.42% | 7.44% | 9.60% | |
| Gilead Sciences Inc. | 19.00% | -15.90% | 5.19% | -0.12% | 12.27% | |
| Johnson & Johnson | 17.28% | 2.53% | 0.31% | 6.62% | 11.07% | |
| Merck & Co. Inc. | 16.19% | 16.85% | -10.10% | 14.35% | 16.93% | |
| Pfizer Inc. | -7.94% | -6.89% | -24.33% | 19.85% | 12.06% | |
| Thermo Fisher Scientific Inc. | -15.81% | -15.85% | -17.47% | -12.91% | -10.13% | |
| Vertex Pharmaceuticals Inc. | 18.58% | -18.54% | 15.25% | 20.83% | 18.99% | |
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 ÷ Adjusted revenues
= 100 × 1,852,100 ÷ 14,291,200 = 12.96%
3 Click competitor name to see calculations.
An analysis of the financial performance between 2021 and 2025 reveals a significant contraction in economic value generation, followed by a period of volatility and partial stabilization.
- Economic Profit
- Absolute economic profit experienced a sharp decline from a peak of US$ 6,770,642 thousand in 2021 to a low of US$ 1,638,308 thousand in 2023. Although a modest recovery occurred in 2024, with profit rising to US$ 2,132,468 thousand, this figure retreated to US$ 1,852,100 thousand by 2025, remaining substantially below 2021 levels.
- Adjusted Revenues
- Revenues exhibited a fluctuating trajectory, beginning at US$ 15,951,500 thousand in 2021 and dropping to US$ 12,205,300 thousand in 2022. A gradual recovery trend was observed through 2024, where revenues peaked at US$ 14,429,800 thousand, before seeing a slight decline to US$ 14,291,200 thousand in 2025.
- Economic Profit Margin
- The economic profit margin showed the most pronounced deterioration, plummeting from 42.45% in 2021 to 12.45% in 2023. A marginal rebound to 14.78% was recorded in 2024; however, the margin declined again to 12.96% in 2025. This trend indicates a systemic reduction in the efficiency of generating economic value relative to adjusted revenues over the five-year period.
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