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
Micron Technology Inc., economic profit calculation
US$ in millions
Based on: 10-K (reporting date: 2025-08-28), 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03).
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
= 8,713 – 17.18% × 61,173 = -1,795
- Net Operating Profit After Taxes (NOPAT)
- The net operating profit after taxes exhibited a generally positive trend from 2020 through 2022, increasing significantly from 2,891 million USD in 2020 to 9,071 million USD in 2022. However, in 2023 there was a sharp decline, resulting in a negative value of -5,885 million USD. This downturn was followed by a recovery in 2024, with NOPAT rising to 857 million USD and further improving to 8,713 million USD in 2025, indicating a return to profitability.
- Cost of Capital
- The cost of capital demonstrated relative stability over the period, fluctuating within a narrow range from 16.22% in 2020 to 17.18% in 2025. Minor variations occurred year over year, with a slight downward trend observed from 16.71% in 2021 to 16.04% in 2023, followed by increases in 2024 and 2025. Overall, the cost of capital remained elevated, consistently above 16%.
- Invested Capital
- Invested capital showed a steady upward trajectory throughout the period, increasing from 42,291 million USD in 2020 to 61,173 million USD in 2025. The growth was fairly consistent year over year, with a notable acceleration between 2024 and 2025, suggesting ongoing capital investments or asset base expansion.
- Economic Profit
- Economic profit fluctuated considerably, moving from a negative 3,968 million USD in 2020 to a reduced negative figure of 1,779 million USD in 2021, then turning positive to 379 million USD in 2022. However, in 2023, economic profit plunged sharply to -14,462 million USD, marking a significant value destruction. The figure improved to -7,986 million USD in 2024 and further improved to -1,795 million USD in 2025, yet remained negative, indicating that the company has not consistently created value over and above its cost of capital during this period.
- Summary
- Overall, the data reveals substantial volatility in profitability, particularly illustrated by the drastic turnaround in NOPAT and economic profit in 2023. Despite a return to operational profitability in subsequent years, economic profit remains negative, reflecting challenges in generating returns above the elevated cost of capital. Invested capital grew steadily, which may have contributed to increased operating profit but has yet to translate into sustainable economic profit. The cost of capital remained relatively high throughout, posing a persistent hurdle for value creation. These dynamics suggest the company experienced a period of operational difficulty around 2023 but showed signs of recovery thereafter, albeit without fully overcoming economic profit deficits.
Net Operating Profit after Taxes (NOPAT)
Micron Technology Inc., NOPAT calculation
US$ in millions
Based on: 10-K (reporting date: 2025-08-28), 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03).
1 Elimination of deferred tax expense. See details »
2 Addition of increase (decrease) in equity equivalents to net income (loss) attributable to Micron.
3 2025 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 775 × 4.26% = 33
4 2025 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 510 × 21.00% = 107
5 Addition of after taxes interest expense to net income (loss) attributable to Micron.
6 2025 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 497 × 21.00% = 104
7 Elimination of after taxes investment income.
- Net Income (Loss) Attributable to Micron
- The net income exhibited significant fluctuations over the observed periods. Starting from a positive value of 2,687 million USD in 2020, there was a substantial increase to 5,861 million USD in 2021, followed by a further rise to 8,687 million USD in 2022. However, the year 2023 saw a marked reversal with a net loss of 5,833 million USD. Subsequently, the net income rebounded in 2024 to a positive 778 million USD and further increased to 8,539 million USD in 2025. This pattern highlights considerable volatility in profitability, with a notable dip in 2023 amidst an overall upward trajectory in net income.
- Net Operating Profit After Taxes (NOPAT)
- NOPAT reflected a trend similar to net income, indicating a strong correlation between operating profitability and net earnings. The figure rose steadily from 2,891 million USD in 2020 to 5,967 million USD in 2021 and reached a peak of 9,071 million USD in 2022. A sharp decline occurred in 2023, with NOPAT turning negative at -5,885 million USD. Recovery ensued in 2024 with a modest positive value of 857 million USD and a significant improvement to 8,713 million USD in 2025. This indicates that operating efficiency and after-tax operating profits experienced a disruption in 2023 but resumed a positive and robust recovery in the subsequent years.
- Overall Trends and Insights
- Both net income and NOPAT demonstrated robust growth through 2022, followed by a critical downturn in 2023. The sharp declines in 2023 suggest an extraordinary or challenging event impacting profitability and operational effectiveness during that year. The recovery in 2024 and strong performance in 2025 reflect resilience and an effective restoration of earnings capacity. The data suggests that despite volatility, the company managed to return to a growth trajectory in profitability in the most recent period.
Cash Operating Taxes
Micron Technology Inc., cash operating taxes calculation
US$ in millions
Based on: 10-K (reporting date: 2025-08-28), 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03).
- Income Tax Provision
- Over the examined periods, the income tax provision exhibits considerable volatility. Starting at 280 million USD in 2020, it rose significantly to 394 million USD in 2021. The figure then more than doubled to 888 million USD in 2022, indicating a substantial increase in tax expenses or taxable income during that year. However, in 2023, the income tax provision sharply declined to 177 million USD, the lowest in the observed timeframe. It then rebounded to 451 million USD in 2024 and reached a peak of 1,124 million USD in 2025, marking the highest level recorded. This pattern suggests fluctuations in profitability or changes in tax strategy, with a notable upward trend towards the latter periods.
- Cash Operating Taxes
- Cash operating taxes demonstrate a parallel yet slightly less volatile pattern compared to the income tax provision. Beginning at 189 million USD in 2020, the amount increased to 446 million USD in 2021 and further rose to 618 million USD in 2022. A significant decline occurred in 2023, where the cash operating taxes dropped to 172 million USD, closely mirroring the income tax provision trend. Following this low point, there was a recovery to 428 million USD in 2024, and a substantial increase to 963 million USD in 2025. The overall trajectory shows growth in cash taxes paid, with a notable dip in 2023, suggesting changes in operating income or tax payments timing.
- Comparative Analysis
- Both income tax provision and cash operating taxes reveal correlated fluctuations across the years, with peaks in 2022 and 2025 and a pronounced trough in 2023. The income tax provision consistently exceeds cash operating taxes, indicating differences likely due to deferred tax adjustments or non-cash tax expenses. The sharp variations imply that fiscal results and tax obligations experienced significant shifts over the period, possibly impacted by changes in earnings, tax legislation, or accounting practices.
Invested Capital
Micron Technology Inc., invested capital calculation (financing approach)
US$ in millions
Based on: 10-K (reporting date: 2025-08-28), 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03).
1 Addition of capitalized operating leases.
2 Elimination of deferred taxes from assets and liabilities. See details »
3 Addition of equity equivalents to shareholders’ equity.
4 Removal of accumulated other comprehensive income.
5 Subtraction of construction in progress.
6 Subtraction of marketable debt investments.
- Total Reported Debt & Leases
- The total reported debt and leases demonstrate a fluctuating upward trend over the analyzed periods. Initially, the amount increased slightly from 7,230 million USD in 2020 to 7,576 million USD in 2022. A significant rise occurred between 2022 and 2023, with the value nearly doubling to 13,999 million USD. This elevated level of debt and leases was sustained through 2024 and increased further to 15,352 million USD in 2025, indicating an increasing reliance on debt financing in recent years.
- Shareholders’ Equity
- Shareholders’ equity generally exhibited growth over the reported timeframe, rising from 38,996 million USD in 2020 to a peak of 49,907 million USD in 2022. However, in 2023, equity declined to 44,120 million USD before resuming an upward trend, reaching 54,165 million USD in 2025. This pattern suggests some volatility, but a longer-term positive increase in equity base is evident by the end of the period.
- Invested Capital
- Invested capital shows an overall growth trend, moving from 42,291 million USD in 2020 to 61,173 million USD in 2025. The increase appears steady, with minor fluctuations around 2023 and 2024 when the invested capital plateaued near 53,000 million USD before rising again. This reflects a consistent expansion in the company's total capital commitment over the examined years.
- General Insights
- The data indicates that the company has been increasing its use of debt and leases substantially since 2022, which has contributed to rising invested capital. Despite some fluctuations in shareholders’ equity, the overall capital structure suggests growth and increased financial leverage. The simultaneous growth in both equity and debt levels points to an expansion strategy that involves utilizing both internal funds and external borrowings.
Cost of Capital
Micron Technology Inc., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 210,833) | 210,833) | ÷ | 226,222) | = | 0.93 | 0.93 | × | 18.13% | = | 16.90% | ||
| Debt3 | 14,614) | 14,614) | ÷ | 226,222) | = | 0.06 | 0.06 | × | 5.29% × (1 – 21.00%) | = | 0.27% | ||
| Operating lease liability4 | 775) | 775) | ÷ | 226,222) | = | 0.00 | 0.00 | × | 4.26% × (1 – 21.00%) | = | 0.01% | ||
| Total: | 226,222) | 1.00 | 17.18% | ||||||||||
Based on: 10-K (reporting date: 2025-08-28).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 113,369) | 113,369) | ÷ | 127,420) | = | 0.89 | 0.89 | × | 18.13% | = | 16.13% | ||
| Debt3 | 13,370) | 13,370) | ÷ | 127,420) | = | 0.10 | 0.10 | × | 5.29% × (1 – 21.00%) | = | 0.44% | ||
| Operating lease liability4 | 681) | 681) | ÷ | 127,420) | = | 0.01 | 0.01 | × | 3.42% × (1 – 21.00%) | = | 0.01% | ||
| Total: | 127,420) | 1.00 | 16.58% | ||||||||||
Based on: 10-K (reporting date: 2024-08-29).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 76,818) | 76,818) | ÷ | 90,317) | = | 0.85 | 0.85 | × | 18.13% | = | 15.42% | ||
| Debt3 | 12,830) | 12,830) | ÷ | 90,317) | = | 0.14 | 0.14 | × | 5.37% × (1 – 21.00%) | = | 0.60% | ||
| Operating lease liability4 | 669) | 669) | ÷ | 90,317) | = | 0.01 | 0.01 | × | 3.21% × (1 – 21.00%) | = | 0.02% | ||
| Total: | 90,317) | 1.00 | 16.04% | ||||||||||
Based on: 10-K (reporting date: 2023-08-31).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 57,522) | 57,522) | ÷ | 64,550) | = | 0.89 | 0.89 | × | 18.13% | = | 16.16% | ||
| Debt3 | 6,358) | 6,358) | ÷ | 64,550) | = | 0.10 | 0.10 | × | 3.87% × (1 – 21.00%) | = | 0.30% | ||
| Operating lease liability4 | 670) | 670) | ÷ | 64,550) | = | 0.01 | 0.01 | × | 2.90% × (1 – 21.00%) | = | 0.02% | ||
| Total: | 64,550) | 1.00 | 16.48% | ||||||||||
Based on: 10-K (reporting date: 2022-09-01).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 78,438) | 78,438) | ÷ | 86,384) | = | 0.91 | 0.91 | × | 18.13% | = | 16.46% | ||
| Debt3 | 7,387) | 7,387) | ÷ | 86,384) | = | 0.09 | 0.09 | × | 3.54% × (1 – 21.00%) | = | 0.24% | ||
| Operating lease liability4 | 559) | 559) | ÷ | 86,384) | = | 0.01 | 0.01 | × | 2.63% × (1 – 21.00%) | = | 0.01% | ||
| Total: | 86,384) | 1.00 | 16.71% | ||||||||||
Based on: 10-K (reporting date: 2021-09-02).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 58,589) | 58,589) | ÷ | 67,006) | = | 0.87 | 0.87 | × | 18.13% | = | 15.85% | ||
| Debt3 | 7,830) | 7,830) | ÷ | 67,006) | = | 0.12 | 0.12 | × | 3.78% × (1 – 21.00%) | = | 0.35% | ||
| Operating lease liability4 | 587) | 587) | ÷ | 67,006) | = | 0.01 | 0.01 | × | 2.67% × (1 – 21.00%) | = | 0.02% | ||
| Total: | 67,006) | 1.00 | 16.22% | ||||||||||
Based on: 10-K (reporting date: 2020-09-03).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
Economic Spread Ratio
Micron Technology Inc., economic spread ratio calculation, comparison to benchmarks
| Aug 28, 2025 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Economic profit1 | (1,795) | (7,986) | (14,462) | 379) | (1,779) | (3,968) | |
| Invested capital2 | 61,173) | 53,327) | 53,467) | 52,741) | 46,342) | 42,291) | |
| Performance Ratio | |||||||
| Economic spread ratio3 | -2.93% | -14.97% | -27.05% | 0.72% | -3.84% | -9.38% | |
| Benchmarks | |||||||
| Economic Spread Ratio, Competitors4 | |||||||
| Advanced Micro Devices Inc. | — | -20.52% | -21.94% | -21.63% | 35.05% | 8.81% | |
| Analog Devices Inc. | — | -12.64% | -8.56% | -9.92% | -13.17% | -8.17% | |
| Applied Materials Inc. | — | 8.46% | 16.37% | 26.28% | 21.79% | 10.04% | |
| Broadcom Inc. | — | -7.69% | 7.54% | 6.11% | -3.19% | -8.61% | |
| Intel Corp. | — | -25.87% | -14.88% | -8.37% | 8.68% | 14.30% | |
| KLA Corp. | 24.58% | 20.15% | 24.02% | 26.30% | 14.92% | 3.82% | |
| Lam Research Corp. | 17.76% | 2.58% | 7.89% | 22.80% | 18.16% | 2.28% | |
| NVIDIA Corp. | 122.59% | 67.13% | -11.03% | 31.18% | 11.61% | -2.40% | |
| Qualcomm Inc. | 15.19% | 10.39% | 2.82% | 29.26% | 26.66% | 11.71% | |
| Texas Instruments Inc. | — | 5.40% | 15.03% | 35.68% | 34.30% | 29.45% | |
Based on: 10-K (reporting date: 2025-08-28), 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03).
1 Economic profit. See details »
2 Invested capital. See details »
3 2025 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -1,795 ÷ 61,173 = -2.93%
4 Click competitor name to see calculations.
- Economic Profit
- The economic profit figures demonstrate significant volatility over the observed periods. Initially, a substantial negative economic profit was recorded, which improved notably by 2022, turning positive. However, this positive performance was not sustained, with economic profit sharply declining to a much larger negative value in 2023, followed by partial recoveries in the subsequent years. Overall, the trend reflects a company grappling with inconsistency in generating returns above its cost of capital.
- Invested Capital
- Invested capital shows a steady upward trend throughout the years, increasing from approximately $42.3 billion in 2020 to over $61 billion by 2025. This consistent growth suggests ongoing investments in assets or operations, indicating expansion or significant capital expenditures despite fluctuations in profitability.
- Economic Spread Ratio
- The economic spread ratio mirrors the instability noted in economic profit. Beginning with a considerably negative spread in 2020, there is an improvement in 2022 where the ratio crosses into positive territory. Yet, this improvement is temporary, as the spread plunges to a much deeper negative level in 2023, before gradually recovering in the following years. The pattern highlights challenges in effectively utilizing invested capital to generate economic returns consistently.
Economic Profit Margin
Micron Technology Inc., economic profit margin calculation, comparison to benchmarks
| Aug 28, 2025 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Economic profit1 | (1,795) | (7,986) | (14,462) | 379) | (1,779) | (3,968) | |
| Revenue | 37,378) | 25,111) | 15,540) | 30,758) | 27,705) | 21,435) | |
| Performance Ratio | |||||||
| Economic profit margin2 | -4.80% | -31.80% | -93.06% | 1.23% | -6.42% | -18.51% | |
| Benchmarks | |||||||
| Economic Profit Margin, Competitors3 | |||||||
| Advanced Micro Devices Inc. | — | -46.34% | -56.01% | -53.65% | 13.21% | 3.94% | |
| Analog Devices Inc. | — | -58.36% | -30.72% | -37.17% | -84.63% | -26.55% | |
| Applied Materials Inc. | — | 6.89% | 10.97% | 15.18% | 13.90% | 7.64% | |
| Broadcom Inc. | — | -21.01% | 13.19% | 11.42% | -7.52% | -23.77% | |
| Intel Corp. | — | -44.96% | -25.27% | -11.77% | 9.72% | 15.06% | |
| KLA Corp. | 18.80% | 17.29% | 19.08% | 22.24% | 14.71% | 4.28% | |
| Lam Research Corp. | 14.85% | 2.62% | 6.93% | 16.83% | 14.65% | 2.66% | |
| NVIDIA Corp. | 44.40% | 33.89% | -8.72% | 20.90% | 9.08% | -3.11% | |
| Qualcomm Inc. | 10.73% | 8.24% | 2.48% | 19.49% | 16.06% | 8.84% | |
| Texas Instruments Inc. | — | 9.04% | 19.38% | 31.29% | 30.68% | 26.40% | |
Based on: 10-K (reporting date: 2025-08-28), 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03).
1 Economic profit. See details »
2 2025 Calculation
Economic profit margin = 100 × Economic profit ÷ Revenue
= 100 × -1,795 ÷ 37,378 = -4.80%
3 Click competitor name to see calculations.
- Revenue Trends
- The revenue exhibits a general positive trend over the analyzed periods, increasing from approximately $21.4 billion in 2020 to about $37.4 billion in 2025. The revenue peaked in 2025 with $37.4 billion, reflecting significant growth despite a notable dip in 2023, where revenue decreased sharply to around $15.5 billion. This decline interrupts an otherwise upward trend, followed by a rebound in 2024 and 2025.
- Economic Profit Analysis
- The economic profit displays substantial volatility and predominantly negative values throughout the periods. Initially, the company recorded a loss of approximately $3.97 billion in 2020, which improved to a smaller loss of $1.78 billion in 2021 and turned positive in 2022 at $379 million. However, this improvement was short-lived, as in 2023 the economic profit plummeted dramatically to a loss of $14.46 billion, the largest negative value in the timeline. Subsequently, the company partially recovered, with losses reducing to $7.99 billion in 2024 and further to $1.79 billion in 2025.
- Economic Profit Margin Insights
- The economic profit margin mirrors the behavior of economic profit, indicating profitability efficiency relative to revenue. It improved from -18.5% in 2020 to -6.42% in 2021 and crossed into positive territory at 1.23% in 2022. Nevertheless, the margin deteriorated markedly in 2023, dropping to -93.06%, coinciding with the sharp revenue decline and the significant economic loss. The margin partially recovered in the following years, improving to -31.8% in 2024 and -4.8% in 2025, indicating ongoing challenges but reducing the extent of unprofitability.
- Overall Financial Health and Operational Efficiency
- The company experiences considerable instability in its economic profitability despite relatively strong revenue growth over the longer term. The extreme loss in 2023 marks a critical point, suggesting operational or market challenges impacting profitability disproportionately relative to revenue. The subsequent partial recovery indicates efforts towards restoring economic efficiency; however, persistent negative economic profit margins through 2025 suggest that the company has not fully returned to generating value above the cost of capital.