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

Meta Platforms Inc., economic profit calculation

US$ in millions

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	56,844)	38,290)	20,828)	40,147)	27,980)
Cost of capital²	15.96%	15.91%	15.62%	16.00%	16.10%
Invested capital³	165,969)	141,324)	101,764)	92,809)	80,951)

Economic profit⁴	30,348)	15,805)	4,928)	25,298)	14,943)

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
= 56,844 – 15.96% × 165,969 = 30,348

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.	Meta Platforms Inc. economic profit increased from 2022 to 2023 and from 2023 to 2024.

Meta Platforms Inc., NOPAT calculation

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	62,360)	39,098)	23,200)	39,370)	29,146)
Deferred income tax expense (benefit)¹	(4,737)	131)	(3,277)	609)	(997)
Increase (decrease) in deferred revenue²	97)	149)	(70)	225)	101)
Increase (decrease) in accrued severance and other personnel liabilities³	(76)	(696)	772)	—)	—)
Increase (decrease) in equity equivalents⁴	(4,716)	(416)	(2,575)	834)	(896)
Interest expense	715)	446)	176)	15)	14)
Interest expense, operating lease liability⁵	789)	697)	533)	388)	330)
Adjusted interest expense	1,504)	1,143)	709)	403)	344)
Tax benefit of interest expense⁶	(316)	(240)	(149)	(85)	(72)
Adjusted interest expense, after taxes⁷	1,188)	903)	560)	319)	272)
Interest income	(2,517)	(1,639)	(452)	(476)	(686)
Investment income, before taxes	(2,517)	(1,639)	(452)	(476)	(686)
Tax expense (benefit) of investment income⁸	529)	344)	95)	100)	144)
Investment income, after taxes⁹	(1,988)	(1,295)	(357)	(376)	(542)
Net operating profit after taxes (NOPAT)	56,844)	38,290)	20,828)	40,147)	27,980)

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 accrued severance and other personnel liabilities.

⁴ Addition of increase (decrease) in equity equivalents to net income.

⁵ 2024 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 20,234 × 3.90% = 789

⁶ 2024 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 1,504 × 21.00% = 316

⁷ Addition of after taxes interest expense to net income.

⁸ 2024 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 2,517 × 21.00% = 529

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.	Meta Platforms Inc. NOPAT increased from 2022 to 2023 and from 2023 to 2024.

Meta Platforms Inc., cash operating taxes calculation

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Provision for income taxes	8,303)	8,330)	5,619)	7,914)	4,034)
Less: Deferred income tax expense (benefit)	(4,737)	131)	(3,277)	609)	(997)
Add: Tax savings from interest expense	316)	240)	149)	85)	72)
Less: Tax imposed on investment income	529)	344)	95)	100)	144)
Cash operating taxes	12,827)	8,095)	8,950)	7,290)	4,959)

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).

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.	Meta Platforms Inc. cash operating taxes decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Meta Platforms Inc., invested capital calculation (financing approach)

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Finance lease liabilities, current	76)	90)	129)	75)	54)
Long-term debt	28,826)	18,385)	9,923)	—)	—)
Finance lease liabilities, non-current	633)	600)	558)	506)	469)
Operating lease liability¹	20,234)	18,849)	16,668)	13,873)	10,654)
Total reported debt & leases	49,769)	37,924)	27,278)	14,454)	11,177)
Stockholders’ equity	182,637)	153,168)	125,713)	124,879)	128,290)
Net deferred tax (assets) liabilities²	(9,578)	(4,864)	(4,946)	(1,729)	(2,258)
Deferred revenue³	772)	675)	526)	596)	335)
Accrued severance and other personnel liabilities⁴	—)	76)	772)	—)	—)
Equity equivalents⁵	(8,806)	(4,113)	(3,648)	(1,133)	(1,923)
Accumulated other comprehensive (income) loss, net of tax⁶	3,097)	2,155)	3,530)	693)	(927)
Adjusted stockholders’ equity	176,928)	151,210)	125,595)	124,439)	125,440)
Construction in progress⁷	(26,802)	(24,269)	(25,052)	(14,687)	(11,288)
Marketable securities⁸	(33,926)	(23,541)	(26,057)	(31,397)	(44,378)
Invested capital	165,969)	141,324)	101,764)	92,809)	80,951)

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 accrued severance and other personnel liabilities.

⁵ Addition of equity equivalents to stockholders’ equity.

⁶ Removal of accumulated other comprehensive income.

⁷ Subtraction of construction in progress.

⁸ Subtraction of marketable securities.

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.	Meta Platforms Inc. invested capital increased from 2022 to 2023 and from 2023 to 2024.

Meta Platforms Inc., cost of capital calculations

Dec 31, 2024

	Capital (fair value)¹	Weights					Cost of capital
Equity²	1,740,624)	1,740,624)	÷	1,789,397)	=	0.97	0.97	×	16.31%	=	15.86%
Long-term debt and finance lease liabilities³	28,539)	28,539)	÷	1,789,397)	=	0.02	0.02	×	5.31% × (1 – 21.00%)	=	0.07%
Operating lease liability⁴	20,234)	20,234)	÷	1,789,397)	=	0.01	0.01	×	3.90% × (1 – 21.00%)	=	0.03%
Total:	1,789,397)					1.00					15.96%

Based on: 10-K (reporting date: 2024-12-31).

¹ US$ in millions

² Equity. See details »

³ Long-term debt and finance lease liabilities. See details »

⁴ Operating lease liability. See details »

Dec 31, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	1,210,942)	1,210,942)	÷	1,248,961)	=	0.97	0.97	×	16.31%	=	15.81%
Long-term debt and finance lease liabilities³	19,170)	19,170)	÷	1,248,961)	=	0.02	0.02	×	4.61% × (1 – 21.00%)	=	0.06%
Operating lease liability⁴	18,849)	18,849)	÷	1,248,961)	=	0.02	0.02	×	3.70% × (1 – 21.00%)	=	0.04%
Total:	1,248,961)					1.00					15.91%

Based on: 10-K (reporting date: 2023-12-31).

¹ US$ in millions

² Equity. See details »

³ Long-term debt and finance lease liabilities. See details »

⁴ Operating lease liability. See details »

Dec 31, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	489,413)	489,413)	÷	515,398)	=	0.95	0.95	×	16.31%	=	15.48%
Long-term debt and finance lease liabilities³	9,317)	9,317)	÷	515,398)	=	0.02	0.02	×	4.06% × (1 – 21.00%)	=	0.06%
Operating lease liability⁴	16,668)	16,668)	÷	515,398)	=	0.03	0.03	×	3.20% × (1 – 21.00%)	=	0.08%
Total:	515,398)					1.00					15.62%

Based on: 10-K (reporting date: 2022-12-31).

¹ US$ in millions

² Equity. See details »

³ Long-term debt and finance lease liabilities. See details »

⁴ Operating lease liability. See details »

Dec 31, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	647,169)	647,169)	÷	661,623)	=	0.98	0.98	×	16.31%	=	15.95%
Long-term debt and finance lease liabilities³	581)	581)	÷	661,623)	=	0.00	0.00	×	2.70% × (1 – 21.00%)	=	0.00%
Operating lease liability⁴	13,873)	13,873)	÷	661,623)	=	0.02	0.02	×	2.80% × (1 – 21.00%)	=	0.05%
Total:	661,623)					1.00					16.00%

Based on: 10-K (reporting date: 2021-12-31).

¹ US$ in millions

² Equity. See details »

³ Long-term debt and finance lease liabilities. See details »

⁴ Operating lease liability. See details »

Dec 31, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	754,633)	754,633)	÷	765,810)	=	0.99	0.99	×	16.31%	=	16.07%
Long-term debt and finance lease liabilities³	523)	523)	÷	765,810)	=	0.00	0.00	×	2.90% × (1 – 21.00%)	=	0.00%
Operating lease liability⁴	10,654)	10,654)	÷	765,810)	=	0.01	0.01	×	3.10% × (1 – 21.00%)	=	0.03%
Total:	765,810)					1.00					16.10%

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

¹ US$ in millions

² Equity. See details »

³ Long-term debt and finance lease liabilities. See details »

⁴ Operating lease liability. See details »

Meta Platforms 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 millions)
Economic profit¹	30,348)	15,805)	4,928)	25,298)	14,943)
Invested capital²	165,969)	141,324)	101,764)	92,809)	80,951)
Performance Ratio
Economic spread ratio³	18.29%	11.18%	4.84%	27.26%	18.46%
Benchmarks
Economic Spread Ratio, Competitors⁴
Alphabet Inc.	26.75%	20.10%	11.70%	31.01%	14.01%
Comcast Corp.	-0.97%	-2.81%	-7.28%	-2.27%	-3.91%
Netflix Inc.	4.74%	-1.73%	-2.50%	1.97%	-3.46%
Walt Disney Co.	-10.98%	-12.59%	-10.44%	-13.26%	-15.53%

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 × 30,348 ÷ 165,969 = 18.29%

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.	Meta Platforms Inc. economic spread ratio improved from 2022 to 2023 and from 2023 to 2024.

Meta Platforms 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 millions)
Economic profit¹	30,348)	15,805)	4,928)	25,298)	14,943)

Revenue	164,501)	134,902)	116,609)	117,929)	85,965)
Add: Increase (decrease) in deferred revenue	97)	149)	(70)	225)	101)
Adjusted revenue	164,598)	135,051)	116,539)	118,154)	86,066)
Performance Ratio
Economic profit margin²	18.44%	11.70%	4.23%	21.41%	17.36%
Benchmarks
Economic Profit Margin, Competitors³
Alphabet Inc.	17.38%	12.39%	8.35%	20.56%	11.15%
Comcast Corp.	-1.68%	-4.87%	-12.87%	-4.46%	-8.44%
Netflix Inc.	4.94%	-1.93%	-2.98%	2.30%	-4.09%
Walt Disney Co.	-19.98%	-24.59%	-21.49%	-33.80%	-41.76%

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 revenue
= 100 × 30,348 ÷ 164,598 = 18.44%

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.	Meta Platforms Inc. economic profit margin improved from 2022 to 2023 and from 2023 to 2024.

Meta Platforms Inc. (NASDAQ:META)

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