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.
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Micron Technology Inc. pages available for free this week:
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Price to Sales (P/S) since 2005
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Economic Profit
Micron Technology Inc., economic profit calculation
US$ in millions
| 12 months ended: | Aug 28, 2025 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | |
|---|---|---|---|---|---|---|---|
| Net operating profit after taxes (NOPAT)1 | |||||||
| Cost of capital2 | |||||||
| Invested capital3 | |||||||
| Economic profit4 | |||||||
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
= – × =
- Net Operating Profit After Taxes (NOPAT)
- The net operating profit after taxes demonstrated significant volatility over the observed periods. Initially, there was a strong upward trend, with NOPAT increasing from $2,891 million in 2020 to a peak of $9,071 million in 2022. However, this was followed by a sharp decline to a negative $5,885 million in 2023. The subsequent years showed a partial recovery, with values reaching $857 million in 2024 and rising substantially again to $8,713 million in 2025. This pattern indicates considerable operational fluctuations, possibly due to market conditions or internal management challenges.
- Cost of Capital
- The cost of capital remained relatively stable throughout the period, fluctuating between 16.0% and 17.14%. The lowest value was recorded at 16% in 2023, while the highest was 17.14% in 2025. This slight variation suggests relatively consistent capital costs with minor increases towards the later years, which could reflect changes in market risk or shifts in the company’s capital structure.
- Invested Capital
- Invested capital showed a steady growth trend across the entire time frame. Starting at $42,291 million in 2020, it gradually increased each year, reaching $61,173 million by 2025. The consistent growth indicates ongoing investment activities, possibly in assets or operations expansion. The notable increase in capital investment could contribute to future growth potential but also implies higher capital employed on which returns must be generated.
- Economic Profit
- Economic profit displayed significant variability and was primarily negative in most years, except for 2022 when a small positive value of $400 million was recorded. Starting with a substantial negative economic profit of -$3,952 million in 2020, the company improved to -$1,760 million in 2021 and turned positive in 2022. Following this, there was a drastic deterioration in 2023 to -$14,442 million, followed by partial recoveries to -$7,964 million in 2024 and -$1,769 million in 2025. This pattern suggests that despite the invested capital growth, the returns relative to the cost of capital have been insufficient for most periods, indicating challenges in value creation or operational efficiency during these years.
Net Operating Profit after Taxes (NOPAT)
Micron Technology Inc., NOPAT calculation
US$ 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
= × =
4 2025 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= × 21.00% =
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
= × 21.00% =
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 | ÷ | = | × | = | |||||||||
| Debt3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
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 | ÷ | = | × | = | |||||||||
| Debt3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
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 | ÷ | = | × | = | |||||||||
| Debt3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
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 | ÷ | = | × | = | |||||||||
| Debt3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
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 | ÷ | = | × | = | |||||||||
| Debt3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
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 | ÷ | = | × | = | |||||||||
| Debt3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
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 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| Economic spread ratio3 | |||||||
| Benchmarks | |||||||
| Economic Spread Ratio, Competitors4 | |||||||
| Advanced Micro Devices Inc. | |||||||
| Analog Devices Inc. | |||||||
| Applied Materials Inc. | |||||||
| Broadcom Inc. | |||||||
| Intel Corp. | |||||||
| KLA Corp. | |||||||
| Lam Research Corp. | |||||||
| NVIDIA Corp. | |||||||
| Qualcomm Inc. | |||||||
| Texas Instruments Inc. | |||||||
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 × ÷ =
4 Click competitor name to see calculations.
- Economic Profit
- Economic profit demonstrated significant volatility over the analyzed periods. It started with a substantial negative value of -3952 million US dollars and improved notably in the subsequent year to -1760 million US dollars. The trend continued positively, reaching a positive economic profit of 400 million US dollars, indicating a period of value creation. However, this was followed by a sharp decline to -14442 million US dollars, representing a substantial economic loss. Although there was some recovery to -7964 million US dollars, the latest figure showed a further reduction in losses, amounting to -1769 million US dollars. Overall, the economic profit pattern suggests fluctuating performance with periods of both improvement and significant downturns.
- Invested Capital
- The invested capital exhibited a generally increasing trend throughout the periods. Beginning at 42291 million US dollars, it rose steadily to reach 46342 million and then increased further to 52741 million US dollars. The capital stabilized around the 53000 million US dollars mark in the next two years with values of 53467 million and 53327 million US dollars, respectively. The latest figure showed a considerable growth to 61173 million US dollars. This trend suggests ongoing investment and possibly expansion or asset accumulation over the years.
- Economic Spread Ratio
- The economic spread ratio followed a pattern similar to economic profit but reflected negative returns for most of the periods. Initially, it was significantly negative at -9.34%, improving to -3.8%, and briefly turned positive at 0.76%. Following this positive interval, the ratio deteriorated drastically to -27.01%, followed by a partial recovery to -14.93%, and most recently improved further to -2.89%. This ratio highlights the company's inconsistent ability to generate returns above its cost of capital, with only one period showing positive spreads and generally negative performance otherwise.
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 | |||||||
| Revenue | |||||||
| Performance Ratio | |||||||
| Economic profit margin2 | |||||||
| Benchmarks | |||||||
| Economic Profit Margin, Competitors3 | |||||||
| Advanced Micro Devices Inc. | |||||||
| Analog Devices Inc. | |||||||
| Applied Materials Inc. | |||||||
| Broadcom Inc. | |||||||
| Intel Corp. | |||||||
| KLA Corp. | |||||||
| Lam Research Corp. | |||||||
| NVIDIA Corp. | |||||||
| Qualcomm Inc. | |||||||
| Texas Instruments Inc. | |||||||
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 × ÷ =
3 Click competitor name to see calculations.
- Revenue Trends
- Over the observed periods, revenue demonstrates a general upward trajectory with notable fluctuations. Starting at a level of approximately 21.4 billion USD in the first period, revenue climbs steadily to about 30.8 billion USD by the 2022 fiscal year. A significant decline occurs in the following period, dropping to roughly 15.5 billion USD, before recovering to 25.1 billion USD and then substantially increasing to nearly 37.4 billion USD in the most recent period. This pattern indicates some volatility, likely reflecting changing market conditions or operational factors impacting sales.
- Economic Profit Analysis
- Economic profit values exhibit considerable fluctuation across the periods. Initially, the company experiences substantial negative economic profit at nearly -3.95 billion USD, which improves significantly by the next period to approximately -1.76 billion USD. A positive economic profit of 400 million USD is achieved in 2022, suggesting a brief period of operational profitability beyond cost of capital. However, this is followed by a sharp deterioration to -14.4 billion USD and subsequent moderate recoveries at -7.96 billion USD and -1.77 billion USD. These swings imply volatility in value creation, with large losses in certain years overshadowing periods of modest gains.
- Economic Profit Margin Insights
- The economic profit margin reflects the company's efficiency in generating economic profit relative to revenue. Beginning with a significantly negative margin nearing -18.4%, the margin improves to approximately -6.35% and briefly turns positive to around 1.3%, aligning with the positive economic profit recorded. Following this improvement, the margin plunges to almost -93%, indicating extreme inefficiency or substantial losses in that fiscal year. Subsequent recoveries to -31.7% and -4.7% margins suggest ongoing challenges in maintaining consistent profitability. The margin pattern underscores the volatile operational performance and difficulties in sustaining returns exceeding the cost of capital.
- Overall Interpretation
- The financial data reveal a company experiencing significant volatility in profitability despite generally increasing revenue over the long term. The sharp swings in economic profit and corresponding margins suggest challenges in cost control, investment returns, or a cyclical industry environment impacting profits disproportionately relative to revenue changes. While there are periods of improvement indicating potential operational strength, the recurrent negative values imply ongoing risks to sustained economic profitability.