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
Net Operating Profit after Taxes (NOPAT)
Cash Operating Taxes
Invested Capital
Cost of Capital
Economic Spread Ratio
Economic Profit Margin

Fidelity National Information Services Inc., economic profit calculation

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net operating profit after taxes (NOPAT)¹	(17,009)	524)	325)	578)	889)
Cost of capital²	8.59%	8.74%	9.59%	9.87%	9.79%
Invested capital³	52,862)	73,331)	75,049)	75,448)	22,222)

Economic profit⁴	(21,549)	(5,882)	(6,872)	(6,870)	(1,287)

Based on: 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), 10-K (reporting date: 2018-12-31).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2022 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= -17,009 – 8.59% × 52,862 = -21,549

Download chart

Item	Description	The company
Economic profit	Economic profit is a measure of corporate performance computed by taking the spread between the return on invested capital and the cost of capital, and multiplying by the invested capital.	Fidelity National Information Services Inc. economic profit increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Fidelity National Information Services Inc., NOPAT calculation

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net earnings (loss) attributable to FIS common stockholders	(16,720)	417)	158)	298)	846)
Deferred income tax expense (benefit)¹	(525)	(89)	(211)	(115)	(116)
Increase (decrease) in allowance for credit losses²	(1)	(6)	22)	43)	(46)
Increase (decrease) in deferred revenue³	(1)	14)	71)	63)	(76)
Increase (decrease) in equity equivalents⁴	(527)	(81)	(118)	(9)	(238)
Interest expense	300)	216)	339)	389)	314)
Interest expense, operating lease liability⁵	12)	16)	19)	22)	14)
Adjusted interest expense	312)	232)	358)	411)	328)
Tax benefit of interest expense⁶	(65)	(49)	(75)	(86)	(69)
Adjusted interest expense, after taxes⁷	246)	183)	283)	325)	259)
Interest income	(25)	(2)	(5)	(52)	(17)
Investment income, before taxes	(25)	(2)	(5)	(52)	(17)
Tax expense (benefit) of investment income⁸	5)	—)	1)	11)	4)
Investment income, after taxes⁹	(20)	(2)	(4)	(41)	(13)
Net income (loss) attributable to noncontrolling interest	12)	7)	6)	5)	35)
Net operating profit after taxes (NOPAT)	(17,009)	524)	325)	578)	889)

Based on: 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), 10-K (reporting date: 2018-12-31).

¹ Elimination of deferred tax expense. See details »

² Addition of increase (decrease) in allowance for credit losses.

³ Addition of increase (decrease) in deferred revenue.

⁴ Addition of increase (decrease) in equity equivalents to net earnings (loss) attributable to FIS common stockholders.

⁵ 2022 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 414 × 2.80% = 12

⁶ 2022 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 312 × 21.00% = 65

⁷ Addition of after taxes interest expense to net earnings (loss) attributable to FIS common stockholders.

⁸ 2022 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 25 × 21.00% = 5

⁹ Elimination of after taxes investment income.

Download chart

Item	Description	The company
NOPAT	Net operating profit after taxes is income from operations, but after removement of taxes calculated on cash basis that are relevant to operating income.	Fidelity National Information Services Inc. NOPAT increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Fidelity National Information Services Inc., cash operating taxes calculation

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Provision for income taxes	377)	371)	96)	100)	208)
Less: Deferred income tax expense (benefit)	(525)	(89)	(211)	(115)	(116)
Add: Tax savings from interest expense	65)	49)	75)	86)	69)
Less: Tax imposed on investment income	5)	—)	1)	11)	4)
Cash operating taxes	962)	508)	381)	290)	389)

Based on: 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), 10-K (reporting date: 2018-12-31).

Download chart

Item	Description	The company
Cash operating taxes	Cash operating taxes are estimated by adjusting income tax expense for changes in deferred taxes and tax benefit from the interest deduction.	Fidelity National Information Services Inc. cash operating taxes increased from 2020 to 2021 and from 2021 to 2022.

Fidelity National Information Services Inc., invested capital calculation (financing approach)

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Short-term borrowings	3,797)	3,911)	2,750)	2,823)	267)
Current portion of long-term debt	2,133)	1,617)	1,314)	140)	48)
Long-term debt, excluding current portion	14,207)	14,825)	15,951)	17,229)	8,670)
Operating lease liability¹	414)	524)	605)	595)	434)
Total reported debt & leases	20,551)	20,877)	20,620)	20,787)	9,419)
Total FIS stockholders’ equity	27,218)	47,347)	49,300)	49,440)	10,215)
Net deferred tax (assets) liabilities²	3,517)	4,144)	3,977)	4,243)	1,328)
Allowance for credit losses³	75)	76)	82)	60)	17)
Deferred revenue⁴	953)	954)	940)	869)	806)
Equity equivalents⁵	4,545)	5,174)	4,999)	5,172)	2,151)
Accumulated other comprehensive (income) loss, net of tax⁶	360)	(252)	(57)	33)	430)
Redeemable noncontrolling interest	180)	174)	174)	—)	—)
Noncontrolling interest	8)	11)	13)	16)	7)
Adjusted total FIS stockholders’ equity	32,311)	52,454)	54,429)	54,661)	12,803)
Invested capital	52,862)	73,331)	75,049)	75,448)	22,222)

Based on: 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), 10-K (reporting date: 2018-12-31).

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 total FIS stockholders’ equity.

⁶ Removal of accumulated other comprehensive income.

Download chart

Item	Description	The company
Invested capital	Capital is an approximation of the economic book value of all cash invested in going-concern business activities.	Fidelity National Information Services Inc. invested capital decreased from 2020 to 2021 and from 2021 to 2022.

Fidelity National Information Services Inc., cost of capital calculations

Dec 31, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	38,192)	38,192)	÷	56,870)	=	0.67	0.67	×	11.78%	=	7.91%
Debt³	18,264)	18,264)	÷	56,870)	=	0.32	0.32	×	2.60% × (1 – 21.00%)	=	0.66%
Operating lease liability⁴	414)	414)	÷	56,870)	=	0.01	0.01	×	2.80% × (1 – 21.00%)	=	0.02%
Total:	56,870)					1.00					8.59%

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 »

Dec 31, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	56,235)	56,235)	÷	77,682)	=	0.72	0.72	×	11.78%	=	8.53%
Debt³	20,923)	20,923)	÷	77,682)	=	0.27	0.27	×	0.90% × (1 – 21.00%)	=	0.19%
Operating lease liability⁴	524)	524)	÷	77,682)	=	0.01	0.01	×	3.00% × (1 – 21.00%)	=	0.02%
Total:	77,682)					1.00					8.74%

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 »

Dec 31, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	83,393)	83,393)	÷	105,653)	=	0.79	0.79	×	11.78%	=	9.30%
Debt³	21,655)	21,655)	÷	105,653)	=	0.20	0.20	×	1.70% × (1 – 21.00%)	=	0.28%
Operating lease liability⁴	605)	605)	÷	105,653)	=	0.01	0.01	×	3.20% × (1 – 21.00%)	=	0.01%
Total:	105,653)					1.00					9.59%

Based on: 10-K (reporting date: 2020-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Dec 31, 2019

	Capital (fair value)¹	Weights					Cost of capital
Equity²	96,627)	96,627)	÷	118,314)	=	0.82	0.82	×	11.78%	=	9.62%
Debt³	21,092)	21,092)	÷	118,314)	=	0.18	0.18	×	1.66% × (1 – 21.00%)	=	0.23%
Operating lease liability⁴	595)	595)	÷	118,314)	=	0.01	0.01	×	3.70% × (1 – 21.00%)	=	0.01%
Total:	118,314)					1.00					9.87%

Based on: 10-K (reporting date: 2019-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Dec 31, 2018

	Capital (fair value)¹	Weights					Cost of capital
Equity²	34,591)	34,591)	÷	44,150)	=	0.78	0.78	×	11.78%	=	9.23%
Debt³	9,125)	9,125)	÷	44,150)	=	0.21	0.21	×	3.28% × (1 – 21.00%)	=	0.54%
Operating lease liability⁴	434)	434)	÷	44,150)	=	0.01	0.01	×	3.28% × (1 – 21.00%)	=	0.03%
Total:	44,150)					1.00					9.79%

Based on: 10-K (reporting date: 2018-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Fidelity National Information Services Inc., economic spread ratio calculation, comparison to benchmarks

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in millions)
Economic profit¹	(21,549)	(5,882)	(6,872)	(6,870)	(1,287)
Invested capital²	52,862)	73,331)	75,049)	75,448)	22,222)
Performance Ratio
Economic spread ratio³	-40.76%	-8.02%	-9.16%	-9.11%	-5.79%
Benchmarks
Economic Spread Ratio, Competitors⁴
Accenture PLC	8.86%	10.70%	11.27%	9.99%	10.23%
Adobe Inc.	11.03%	13.44%	5.71%	3.81%	1.46%
International Business Machines Corp.	-9.33%	-4.34%	-4.08%	-0.35%	—
Intuit Inc.	-4.99%	2.76%	6.09%	19.76%	17.46%
Microsoft Corp.	23.99%	33.00%	31.02%	26.14%	7.80%
Oracle Corp.	-0.86%	7.20%	1.51%	4.22%	-4.78%
Palo Alto Networks Inc.	6.77%	-1.91%	-2.95%	0.29%	-2.52%
Salesforce Inc.	-9.54%	-7.22%	-10.27%	-6.25%	—
ServiceNow Inc.	4.45%	5.66%	7.28%	6.69%	—
Synopsys Inc.	3.01%	-3.01%	-2.83%	-5.83%	-7.20%

Based on: 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), 10-K (reporting date: 2018-12-31).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2022 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -21,549 ÷ 52,862 = -40.76%

⁴ Click competitor name to see calculations.

Download chart

Performance ratio	Description	The company
Economic spread ratio	The ratio of economic profit to invested capital, also equal to the difference between return on invested capital (ROIC) and cost of capital.	Fidelity National Information Services Inc. economic spread ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Fidelity National Information Services Inc., economic profit margin calculation, comparison to benchmarks

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in millions)
Economic profit¹	(21,549)	(5,882)	(6,872)	(6,870)	(1,287)

Revenue	14,528)	13,877)	12,552)	10,333)	8,423)
Add: Increase (decrease) in deferred revenue	(1)	14)	71)	63)	(76)
Adjusted revenue	14,527)	13,891)	12,623)	10,396)	8,347)
Performance Ratio
Economic profit margin²	-148.34%	-42.35%	-54.44%	-66.08%	-15.42%
Benchmarks
Economic Profit Margin, Competitors³
Accenture PLC	4.27%	5.49%	5.73%	4.62%	4.30%
Adobe Inc.	12.84%	16.75%	8.19%	5.73%	2.39%
International Business Machines Corp.	-16.20%	-8.28%	-7.09%	-0.59%	—
Intuit Inc.	-9.60%	3.50%	6.86%	13.17%	11.60%
Microsoft Corp.	22.99%	27.39%	23.03%	19.34%	5.53%
Oracle Corp.	-1.57%	14.24%	3.43%	7.68%	-8.63%
Palo Alto Networks Inc.	7.89%	-2.57%	-4.78%	0.33%	-3.74%
Salesforce Inc.	-26.49%	-16.57%	-25.27%	-12.31%	—
ServiceNow Inc.	3.57%	4.89%	5.94%	4.90%	—
Synopsys Inc.	4.24%	-4.79%	-4.87%	-10.07%	-12.29%

Based on: 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), 10-K (reporting date: 2018-12-31).

¹ Economic profit. See details »

² 2022 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted revenue
= 100 × -21,549 ÷ 14,527 = -148.34%

³ Click competitor name to see calculations.

Download chart

Performance ratio	Description	The company
Economic profit margin	The ratio of economic profit to sales. It is the company profit margin covering income efficiency and asset management. Economic profit margin is not biased in favor of capital-intensive business models, because any added capital is a cost to the economic profit margin.	Fidelity National Information Services Inc. economic profit margin improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Fidelity National Information Services Inc. (NYSE:FIS)

Economic Value Added (EVA)

Economic Profit

Net Operating Profit after Taxes (NOPAT)

Cash Operating Taxes

Invested Capital

Cost of Capital

Economic Spread Ratio

Economic Profit Margin