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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

Moderna Inc., economic profit calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net operating profit after taxes (NOPAT)¹	(5,414)	3,520)	14,737)	3,091)	(605)
Cost of capital²	19.61%	19.74%	19.86%	20.07%	19.96%
Invested capital³	5,263)	7,126)	10,693)	4,183)	481)

Economic profit⁴	(6,446)	2,113)	12,614)	2,251)	(701)

Based on: 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), 10-K (reporting date: 2019-12-31).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2023 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= -5,414 – 19.61% × 5,263 = -6,446

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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.	Moderna Inc. economic profit decreased from 2021 to 2022 and from 2022 to 2023.

Moderna Inc., NOPAT calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income (loss)	(4,714)	8,362)	12,202)	(747)	(514)
Deferred income tax expense (benefit)¹	901)	(578)	(296)	—)	(1)
Increase (decrease) in wholesalers chargebacks, discounts and fees²	692)	—)	—)	—)	—)
Increase (decrease) in deferred revenue³	(2,060)	(4,157)	2,824)	3,842)	(72)
Increase (decrease) in equity equivalents⁴	(467)	(4,735)	2,528)	3,842)	(73)
Interest expense	38)	29)	18)	10)	7)
Interest expense, operating lease liability⁵	50)	10)	10)	11)	9)
Adjusted interest expense	88)	39)	28)	21)	16)
Tax benefit of interest expense⁶	(19)	(8)	(6)	(4)	(3)
Adjusted interest expense, after taxes⁷	70)	30)	22)	16)	13)
(Gain) loss on marketable securities	38)	26)	(1)	(1)	—)
Interest income	(421)	(200)	(18)	(25)	(39)
Investment income, before taxes	(383)	(174)	(19)	(26)	(39)
Tax expense (benefit) of investment income⁸	80)	37)	4)	5)	8)
Investment income, after taxes⁹	(303)	(137)	(15)	(21)	(31)
Net operating profit after taxes (NOPAT)	(5,414)	3,520)	14,737)	3,091)	(605)

Based on: 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), 10-K (reporting date: 2019-12-31).

¹ Elimination of deferred tax expense. See details »

² Addition of increase (decrease) in wholesalers chargebacks, discounts and fees.

³ Addition of increase (decrease) in deferred revenue.

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

⁵ 2023 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 668 × 7.50% = 50

⁶ 2023 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 88 × 21.00% = 19

⁷ Addition of after taxes interest expense to net income (loss).

⁸ 2023 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 383 × 21.00% = 80

⁹ Elimination of after taxes investment income.

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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.	Moderna Inc. NOPAT decreased from 2021 to 2022 and from 2022 to 2023.

Moderna Inc., cash operating taxes calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Provision for (benefit from) income taxes	772)	1,213)	1,083)	3)	(1)
Less: Deferred income tax expense (benefit)	901)	(578)	(296)	—)	(1)
Add: Tax savings from interest expense	19)	8)	6)	4)	3)
Less: Tax imposed on investment income	80)	37)	4)	5)	8)
Cash operating taxes	(191)	1,763)	1,381)	1)	(4)

Based on: 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), 10-K (reporting date: 2019-12-31).

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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.	Moderna Inc. cash operating taxes increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Moderna Inc., invested capital calculation (financing approach)

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Financing lease liabilities, current	—)	161)	165)	24)	—)
Financing lease liabilities, non-current	575)	912)	599)	110)	39)
Operating lease liability¹	668)	127)	152)	103)	97)
Total reported debt & leases	1,243)	1,200)	916)	238)	136)
Stockholders’ equity	13,854)	19,123)	14,145)	2,561)	1,175)
Net deferred tax (assets) liabilities²	(66)	(982)	(326)	—)	—)
Wholesalers chargebacks, discounts and fees³	692)	—)	—)	—)	—)
Deferred revenue⁴	651)	2,711)	6,868)	4,045)	202)
Equity equivalents⁵	1,277)	1,729)	6,542)	4,045)	202)
Accumulated other comprehensive (income) loss, net of tax⁶	123)	370)	24)	(3)	(2)
Adjusted stockholders’ equity	15,254)	21,222)	20,711)	6,603)	1,375)
Construction in progress⁷	(860)	(281)	(212)	(35)	(3)
Marketable securities⁸	(10,374)	(15,015)	(10,722)	(2,623)	(1,027)
Invested capital	5,263)	7,126)	10,693)	4,183)	481)

Based on: 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), 10-K (reporting date: 2019-12-31).

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 deferred revenue.

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.

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Item	Description	The company
Invested capital	Capital is an approximation of the economic book value of all cash invested in going-concern business activities.	Moderna Inc. invested capital decreased from 2021 to 2022 and from 2022 to 2023.

Moderna Inc., cost of capital calculations

Dec 31, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	36,855)	36,855)	÷	38,098)	=	0.97	0.97	×	20.11%	=	19.46%
Financing lease liabilities³	575)	575)	÷	38,098)	=	0.02	0.02	×	4.20% × (1 – 21.00%)	=	0.05%
Operating lease liability⁴	668)	668)	÷	38,098)	=	0.02	0.02	×	7.50% × (1 – 21.00%)	=	0.10%
Total:	38,098)					1.00					19.61%

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

¹ US$ in millions

² Equity. See details »

³ Financing lease liabilities. See details »

⁴ Operating lease liability. See details »

Dec 31, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	53,802)	53,802)	÷	55,002)	=	0.98	0.98	×	20.11%	=	19.68%
Financing lease liabilities³	1,073)	1,073)	÷	55,002)	=	0.02	0.02	×	3.60% × (1 – 21.00%)	=	0.06%
Operating lease liability⁴	127)	127)	÷	55,002)	=	0.00	0.00	×	7.50% × (1 – 21.00%)	=	0.01%
Total:	55,002)					1.00					19.74%

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

¹ US$ in millions

² Equity. See details »

³ Financing lease liabilities. See details »

⁴ Operating lease liability. See details »

Dec 31, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	60,967)	60,967)	÷	61,883)	=	0.99	0.99	×	20.11%	=	19.82%
Financing lease liabilities³	764)	764)	÷	61,883)	=	0.01	0.01	×	3.10% × (1 – 21.00%)	=	0.03%
Operating lease liability⁴	152)	152)	÷	61,883)	=	0.00	0.00	×	6.80% × (1 – 21.00%)	=	0.01%
Total:	61,883)					1.00					19.86%

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

¹ US$ in millions

² Equity. See details »

³ Financing lease liabilities. See details »

⁴ Operating lease liability. See details »

Dec 31, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	61,888)	61,888)	÷	62,126)	=	1.00	1.00	×	20.11%	=	20.04%
Financing lease liabilities³	134)	134)	÷	62,126)	=	0.00	0.00	×	13.10% × (1 – 21.00%)	=	0.02%
Operating lease liability⁴	103)	103)	÷	62,126)	=	0.00	0.00	×	10.30% × (1 – 21.00%)	=	0.01%
Total:	62,126)					1.00					20.07%

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

¹ US$ in millions

² Equity. See details »

³ Financing lease liabilities. See details »

⁴ Operating lease liability. See details »

Dec 31, 2019

	Capital (fair value)¹	Weights					Cost of capital
Equity²	9,644)	9,644)	÷	9,780)	=	0.99	0.99	×	20.11%	=	19.83%
Financing lease liabilities³	39)	39)	÷	9,780)	=	0.00	0.00	×	17.20% × (1 – 21.00%)	=	0.05%
Operating lease liability⁴	97)	97)	÷	9,780)	=	0.01	0.01	×	9.70% × (1 – 21.00%)	=	0.08%
Total:	9,780)					1.00					19.96%

Based on: 10-K (reporting date: 2019-12-31).

¹ US$ in millions

² Equity. See details »

³ Financing lease liabilities. See details »

⁴ Operating lease liability. See details »

Moderna Inc., economic spread ratio calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Economic profit¹	(6,446)	2,113)	12,614)	2,251)	(701)
Invested capital²	5,263)	7,126)	10,693)	4,183)	481)
Performance Ratio
Economic spread ratio³	-122.48%	29.65%	117.96%	53.81%	-145.84%
Benchmarks
Economic Spread Ratio, Competitors⁴
AbbVie Inc.	-4.02%	5.41%	4.79%	-3.05%	7.22%
Amgen Inc.	2.73%	7.40%	7.38%	11.71%	13.91%
Bristol-Myers Squibb Co.	2.02%	-0.68%	1.57%	-14.00%	-3.67%
Danaher Corp.	-7.76%	-2.81%	-2.15%	-3.54%	-6.94%
Eli Lilly & Co.	3.28%	10.61%	12.30%	18.96%	15.79%
Gilead Sciences Inc.	6.00%	2.49%	9.02%	-4.04%	7.27%
Johnson & Johnson	-0.01%	5.22%	10.28%	5.06%	3.97%
Merck & Co. Inc.	-8.49%	11.70%	11.83%	4.67%	11.25%
Pfizer Inc.	-8.95%	18.62%	11.78%	-2.93%	5.68%
Regeneron Pharmaceuticals Inc.	21.20%	24.31%	67.31%	39.18%	28.44%
Thermo Fisher Scientific Inc.	-4.66%	-2.88%	-1.05%	-0.05%	-3.94%

Based on: 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), 10-K (reporting date: 2019-12-31).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2023 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -6,446 ÷ 5,263 = -122.48%

⁴ Click competitor name to see calculations.

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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.	Moderna Inc. economic spread ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Moderna Inc., economic profit margin calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Economic profit¹	(6,446)	2,113)	12,614)	2,251)	(701)

Net product sales	6,671)	18,435)	17,675)	200)	—)
Add: Increase (decrease) in deferred revenue	(2,060)	(4,157)	2,824)	3,842)	(72)
Adjusted net product sales	4,611)	14,278)	20,499)	4,042)	(72)
Performance Ratio
Economic profit margin²	-139.80%	14.80%	61.53%	55.69%	—
Benchmarks
Economic Profit Margin, Competitors³
AbbVie Inc.	-5.04%	7.65%	8.18%	-6.92%	13.62%
Amgen Inc.	7.11%	11.85%	12.23%	18.72%	23.42%
Bristol-Myers Squibb Co.	3.03%	-1.06%	2.72%	-29.68%	-14.08%
Danaher Corp.	-25.47%	-6.97%	-5.37%	-10.39%	-22.52%
Eli Lilly & Co.	2.82%	9.03%	11.36%	18.98%	15.21%
Gilead Sciences Inc.	10.21%	4.21%	15.96%	-8.34%	10.34%
Johnson & Johnson	-0.01%	6.26%	10.77%	6.03%	4.69%
Merck & Co. Inc.	-9.88%	14.59%	17.18%	5.56%	12.89%
Pfizer Inc.	-23.69%	20.56%	12.70%	-7.26%	13.28%
Regeneron Pharmaceuticals Inc.	19.33%	24.48%	45.52%	38.18%	23.61%
Thermo Fisher Scientific Inc.	-9.30%	-5.31%	-2.14%	-0.10%	-8.11%

Based on: 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), 10-K (reporting date: 2019-12-31).

¹ Economic profit. See details »

² 2023 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted net product sales
= 100 × -6,446 ÷ 4,611 = -139.80%

³ Click competitor name to see calculations.

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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.	Moderna Inc. economic profit margin deteriorated from 2021 to 2022 and from 2022 to 2023.

Moderna Inc. (NASDAQ:MRNA)

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