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.
Paying user area
Try for free
UnitedHealth Group Inc. pages available for free this week:
- Statement of Comprehensive Income
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Return on Equity (ROE) since 2005
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to UnitedHealth Group Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Economic Profit
UnitedHealth Group Inc., economic profit calculation
US$ 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 demonstrates a fluctuating pattern in economic profit. Initially, a positive trend is evident, followed by a significant decline in later years. Net operating profit after taxes (NOPAT) increased from 2021 to 2023, but decreased substantially in 2024 and 2025. The cost of capital experienced a slight increase from 2021 to 2022, then a gradual decrease through 2025. Invested capital consistently increased until 2024, before experiencing a slight decrease in 2025.
- Economic Profit Trend
- Economic profit exhibited growth from US$5,849 million in 2021 to US$9,668 million in 2023, indicating increasing value creation. However, a sharp contraction occurred in 2024, with economic profit falling to US$760 million. This trend continued into 2025, resulting in an economic loss of US$1,491 million. This suggests a diminishing ability to generate returns exceeding the cost of capital.
- NOPAT and Invested Capital Relationship
- While NOPAT increased from 2021 to 2023, the concurrent rise in invested capital suggests that the growth in profit was not proportionally higher than the capital employed. The substantial decrease in NOPAT in 2024 and 2025, coupled with a relatively stable invested capital, directly contributed to the decline in economic profit. The slight decrease in invested capital in 2025 did not offset the larger decline in NOPAT.
- Cost of Capital Impact
- The cost of capital remained relatively stable between 2021 and 2023, with a minor increase in 2022. The subsequent decrease in the cost of capital in 2024 and 2025, while positive, was insufficient to counteract the significant reduction in NOPAT and maintain positive economic profit. The decreasing cost of capital did not translate into improved economic performance due to the more substantial decline in profitability.
Overall, the analysis indicates a weakening of economic value creation in the later periods. The company’s ability to generate profits exceeding its cost of capital diminished considerably, culminating in an economic loss in 2025. Further investigation into the factors driving the decline in NOPAT is warranted.
Net Operating Profit after Taxes (NOPAT)
UnitedHealth Group Inc., NOPAT calculation
US$ 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 receivables allowances.
3 Addition of increase (decrease) in unearned revenues.
4 Addition of increase (decrease) in equity equivalents to net earnings attributable to UnitedHealth Group common shareholders.
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 UnitedHealth Group common shareholders.
Net earnings attributable to UnitedHealth Group common shareholders and net operating profit after taxes (NOPAT) both demonstrate a pattern of initial growth followed by a subsequent decline over the five-year period. NOPAT exhibits a more pronounced increase initially, before experiencing a more significant decrease in later years.
- NOPAT Trend
- NOPAT increased from US$18,910 million in 2021 to US$26,672 million in 2023, representing a cumulative growth of approximately 41.1%. This indicates improving operational profitability during this timeframe. However, NOPAT then decreased to US$18,940 million in 2024 and further to US$15,617 million in 2025. This represents a decline of approximately 26.1% from the 2023 peak. The decrease in NOPAT in 2024 and 2025 suggests potential challenges in maintaining operational efficiency or increased costs.
- Net Earnings Trend
- Net earnings attributable to UnitedHealth Group common shareholders increased from US$17,285 million in 2021 to US$22,381 million in 2023, a growth of approximately 29.5%. Similar to NOPAT, net earnings then declined, reaching US$14,405 million in 2024 and US$12,056 million in 2025. This represents a decrease of approximately 46.3% from the 2023 high. The decline in net earnings mirrors the trend observed in NOPAT, suggesting a correlation between operational profitability and overall earnings.
- Relationship between NOPAT and Net Earnings
- While both metrics generally move in the same direction, NOPAT consistently exceeds net earnings throughout the period. This difference could be attributed to factors such as non-operating income or expenses, or differences in accounting treatment. The magnitude of the difference between NOPAT and net earnings remains relatively stable across the observed years.
The observed declines in both NOPAT and net earnings in 2024 and 2025 warrant further investigation to determine the underlying causes and potential implications for future performance.
Cash Operating Taxes
UnitedHealth Group Inc., cash operating taxes calculation
US$ 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 both exhibited increasing values from 2021 to 2023, followed by declines in subsequent years. However, the magnitude and timing of these changes differed between the two items.
- Provision for Income Taxes
- The provision for income taxes increased from US$4,578 million in 2021 to US$5,704 million in 2022, representing a 24.6% increase. Further growth was observed in 2023, reaching US$5,968 million. A notable decrease occurred in 2024, with the provision falling to US$4,829 million, and continued to decline significantly in 2025 to US$1,890 million. This represents a substantial reduction over the two-year period from 2023 to 2025.
- Cash Operating Taxes
- Cash operating taxes demonstrated a similar upward trend initially, rising from US$4,823 million in 2021 to US$6,851 million in 2022, a 42.3% increase. The value continued to increase in 2023, reaching US$6,936 million. A decrease was then observed in 2024, with cash operating taxes falling to US$5,994 million. The decline continued into 2025, with cash operating taxes reported at US$4,531 million. While decreasing, the rate of decline appears less pronounced than that of the provision for income taxes.
- Relationship between Provision and Cash Taxes
- In 2021 and 2022, cash operating taxes were consistently higher than the provision for income taxes. This difference narrowed in 2023, and reversed in 2024 and 2025, with the provision for income taxes exceeding cash operating taxes. The divergence in 2025 is particularly significant, suggesting a substantial difference between reported tax expense and actual cash outflows for tax purposes. This could be attributable to changes in deferred tax assets or liabilities, tax credits, or other non-cash tax effects.
The observed trends suggest a potential shift in the company’s tax profile. The significant decline in both measures from 2023 to 2025 warrants further investigation to understand the underlying drivers and potential implications for future financial performance.
Invested Capital
UnitedHealth Group Inc., invested capital calculation (financing approach)
US$ 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 unearned revenues.
5 Addition of equity equivalents to shareholders’ equity attributable to UnitedHealth Group.
6 Removal of accumulated other comprehensive income.
The invested capital of the organization demonstrates a consistent upward trend over the analyzed period, though the rate of increase fluctuates. Total reported debt & leases and shareholders’ equity attributable to UnitedHealth Group both contribute to this overall growth. A detailed examination of each component reveals specific patterns.
- Total Reported Debt & Leases
- Total reported debt & leases exhibits a steady increase from US$50,276 million in 2021 to US$83,004 million in 2025. The growth is not linear; a more substantial increase is observed between 2022 and 2023 (US$15,000 million) and again between 2023 and 2024 (US$14,358 million). The increase from 2024 to 2025 is comparatively modest, at US$207 million.
- Shareholders’ Equity
- Shareholders’ equity attributable to UnitedHealth Group also shows an increasing trend, rising from US$71,760 million in 2021 to US$94,110 million in 2025. The rate of growth is relatively consistent throughout the period, with increases ranging from approximately US$5,000 million to US$7,000 million annually. The largest increase occurs between 2022 and 2023 (US$10,984 million).
- Invested Capital
- Invested capital, calculated as the sum of total reported debt & leases and shareholders’ equity, increases from US$139,922 million in 2021 to US$197,568 million in 2025. The growth rate mirrors the combined trends of its components, with larger increases observed in 2023 and 2024. Notably, the increase in invested capital slows considerably between 2024 and 2025, rising by only US$754 million, suggesting a potential stabilization in capital deployment.
The consistent growth in both debt and equity suggests ongoing investment and financing activities. The slight deceleration in the growth of invested capital in the most recent year warrants further investigation to determine if this represents a strategic shift or a temporary fluctuation.
Cost of Capital
UnitedHealth Group Inc., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Commercial paper, long-term debt and other financing obligations3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
Based on: 10-K (reporting date: 2025-12-31).
1 US$ in millions
2 Equity. See details »
3 Commercial paper, long-term debt and other financing obligations. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Commercial paper, long-term debt and other financing obligations3 | ÷ | = | × | × (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 Commercial paper, long-term debt and other financing obligations. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Commercial paper, long-term debt and other financing obligations3 | ÷ | = | × | × (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 Commercial paper, long-term debt and other financing obligations. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Commercial paper, long-term debt and other financing obligations3 | ÷ | = | × | × (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 Commercial paper, long-term debt and other financing obligations. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | ÷ | = | × | = | |||||||||
| Commercial paper, long-term debt and other financing obligations3 | ÷ | = | × | × (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 Commercial paper, long-term debt and other financing obligations. See details »
4 Operating lease liability. See details »
Economic Spread Ratio
UnitedHealth Group 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 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
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 demonstrates a fluctuating performance over the five-year period. Initially, the ratio exhibited growth, peaking in 2023, before experiencing a significant decline in subsequent years.
- Economic Spread Ratio Trend
- The economic spread ratio increased from 4.18% in 2021 to 4.33% in 2022, indicating an improved ability to generate returns greater than the cost of capital. This positive trend continued into 2023, with the ratio reaching a high of 5.29%. However, a substantial decrease was observed in 2024, with the ratio falling to 0.38%. This downward trajectory continued into 2025, resulting in a negative ratio of -0.75%, signifying that returns were less than the cost of capital.
The economic spread ratio’s movement closely mirrors the changes in economic profit. The strong positive correlation suggests that the company’s profitability is a primary driver of the economic spread. The decline in economic profit from 2023 to 2025 directly contributed to the decreasing economic spread ratio.
- Relationship with Invested Capital
- Invested capital consistently increased from 2021 to 2024, rising from US$139,922 million to US$198,557 million. While invested capital experienced a slight decrease in 2025 to US$197,568 million, the primary driver of the declining economic spread ratio appears to be the reduction in economic profit, rather than changes in the capital base.
The shift to a negative economic spread ratio in 2025 is a notable development. It indicates that the company’s investments are no longer generating returns sufficient to cover the cost of capital, potentially signaling a need for strategic review and performance improvement initiatives.
Economic Profit Margin
UnitedHealth Group Inc., economic profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Economic profit1 | ||||||
| Revenues, customers | ||||||
| Add: Increase (decrease) in unearned revenues | ||||||
| Adjusted revenues, customers | ||||||
| Performance Ratio | ||||||
| Economic profit margin2 | ||||||
| Benchmarks | ||||||
| Economic Profit Margin, Competitors3 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
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, customers
= 100 × ÷ =
3 Click competitor name to see calculations.
The economic profit exhibited a generally positive trajectory from 2021 through 2023, followed by a significant decline in subsequent years. This pattern is reflected in the economic profit margin, which demonstrates a corresponding shift from increasing profitability to negative economic profit in 2025.
- Economic Profit
- Economic profit increased from US$5,849 million in 2021 to US$7,151 million in 2022, representing a growth of approximately 22.4%. This positive trend continued into 2023, with economic profit reaching US$9,668 million. However, a substantial decrease was observed in 2024, falling to US$760 million, and culminating in an economic loss of US$1,491 million in 2025.
- Adjusted Revenues
- Adjusted revenues consistently increased throughout the period. From US$285,002 million in 2021, revenues grew to US$322,636 million in 2022, US$367,813 million in 2023, US$395,038 million in 2024, and finally reached US$443,743 million in 2025. This indicates consistent revenue growth despite the declining economic profit in later years.
- Economic Profit Margin
- The economic profit margin mirrored the trend in economic profit. It rose from 2.05% in 2021 to 2.22% in 2022 and peaked at 2.63% in 2023. A sharp decline began in 2024, with the margin falling to 0.19%, and ultimately becoming negative in 2025 at -0.34%. This suggests that while revenues increased, the cost of capital or operational inefficiencies eroded profitability relative to revenue generation.
The divergence between increasing revenues and decreasing economic profit margin from 2023 onwards warrants further investigation. The negative economic profit margin in 2025 indicates that the company’s returns are not covering its cost of capital, potentially signaling a need to reassess operational strategies and capital allocation.