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

Newmont Corp., economic profit calculation

US$ in millions

	12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
	Net operating profit after taxes (NOPAT)¹
	Cost of capital²
	Invested capital³

	Economic profit⁴

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-17).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2019 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= – × =

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.	Newmont Corp.’s economic profit decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Newmont Corp., NOPAT calculation

US$ in millions

	12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
	Net income (loss) attributable to Newmont stockholders
	Deferred income tax expense (benefit)¹
	Increase (decrease) in equity equivalents²
	Interest expense, net of capitalized interest
	Interest expense, operating lease liability³
	Adjusted interest expense, net of capitalized interest
	Tax benefit of interest expense, net of capitalized interest⁴
	Adjusted interest expense, net of capitalized interest, after taxes⁵
	(Gain) loss on marketable securities
	Interest
	Investment income, before taxes
	Tax expense (benefit) of investment income⁶
	Investment income, after taxes⁷
	(Income) loss from discontinued operations, net of tax⁸
	Net income (loss) attributable to noncontrolling interest
	Net operating profit after taxes (NOPAT)

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-17).

¹ Elimination of deferred tax expense. See details »

² Addition of increase (decrease) in equity equivalents to net income (loss) attributable to Newmont stockholders.

³ 2019 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= × =

⁴ 2019 Calculation
Tax benefit of interest expense, net of capitalized interest = Adjusted interest expense, net of capitalized interest × Statutory income tax rate
= × 21.00% =

⁵ Addition of after taxes interest expense to net income (loss) attributable to Newmont stockholders.

⁶ 2019 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= × 21.00% =

⁷ Elimination of after taxes investment income.

⁸ Elimination of discontinued operations.

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.	Newmont Corp.’s NOPAT decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Newmont Corp., cash operating taxes calculation

US$ in millions

	12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
	Income and mining tax expense
	Less: Deferred income tax expense (benefit)
	Add: Tax savings from interest expense, net of capitalized interest
	Less: Tax imposed on investment income
	Cash operating taxes

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-17).

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.	Newmont Corp.’s cash operating taxes decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Newmont Corp., invested capital calculation (financing approach)

US$ in millions

		Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
	Current lease and other financing obligations
	Current debt
	Non-current debt
	Non-current lease and other financing obligations
	Operating lease liability¹
	Total reported debt & leases
	Total Newmont stockholders’ equity
	Net deferred tax (assets) liabilities²
	Equity equivalents³
	Accumulated other comprehensive (income) loss, net of tax⁴
	Contingently redeemable noncontrolling interest
	Noncontrolling interests
	Adjusted total Newmont stockholders’ equity
	Construction-in-progress⁵
	Marketable securities and restricted marketable securities⁶
	Invested capital

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-17).

¹ Addition of capitalized operating leases.

² Elimination of deferred taxes from assets and liabilities. See details »

³ Addition of equity equivalents to total Newmont stockholders’ equity.

⁴ Removal of accumulated other comprehensive income.

⁵ Subtraction of construction-in-progress.

⁶ Subtraction of marketable securities and restricted marketable securities.

Item	Description	The company
Invested capital	Capital is an approximation of the economic book value of all cash invested in going-concern business activities.	Newmont Corp.’s invested capital increased from 2017 to 2018 and from 2018 to 2019.

Newmont Corp., cost of capital calculations


Equity²	÷	=	×		=
Debt, lease and other financing obligations³	÷	=	×	× (1 – 21.00%)	=
Operating lease liability⁴	÷	=	×	× (1 – 21.00%)	=
Total:

Based on: 10-K (filing date: 2020-02-20).

¹ US$ in millions

² Equity. See details »