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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

Las Vegas Sands Corp., economic profit calculation

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net operating profit after taxes (NOPAT)¹	(997)	(1,040)	(1,708)	3,870)	3,351)
Cost of capital²	12.31%	11.65%	12.25%	12.95%	13.02%
Invested capital³	18,926)	15,828)	15,949)	18,011)	19,047)

Economic profit⁴	(3,328)	(2,883)	(3,661)	1,538)	871)

Based on: 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), 10-K (reporting date: 2018-12-31).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2022 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= -997 – 12.31% × 18,926 = -3,328

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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.	Las Vegas Sands Corp. economic profit increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.

Las Vegas Sands Corp., NOPAT calculation

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income (loss) attributable to Las Vegas Sands Corp.	1,832)	(961)	(1,685)	2,698)	2,413)
Deferred income tax expense (benefit)¹	(2)	(45)	(32)	157)	113)
Increase (decrease) in provision for credit losses²	(15)	(23)	32)	(42)	(118)
Increase (decrease) in equity equivalents³	(17)	(68)	—)	115)	(5)
Interest expense, net of amounts capitalized	702)	621)	536)	555)	446)
Interest expense, operating lease liability⁴	8)	8)	15)	15)	66)
Adjusted interest expense, net of amounts capitalized	710)	629)	551)	570)	512)
Tax benefit of interest expense, net of amounts capitalized⁵	(149)	(132)	(116)	(120)	(108)
Adjusted interest expense, net of amounts capitalized, after taxes⁶	561)	497)	435)	451)	405)
Interest income	—)	—)	—)	—)	—)
(Income) loss from discontinued operations, net of tax⁷	(2,898)	(193)	—)	—)	—)
Net income (loss) attributable to noncontrolling interest	(475)	(315)	(458)	606)	538)
Net operating profit after taxes (NOPAT)	(997)	(1,040)	(1,708)	3,870)	3,351)

Based on: 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), 10-K (reporting date: 2018-12-31).

¹ Elimination of deferred tax expense. See details »

² Addition of increase (decrease) in provision for credit losses.

³ Addition of increase (decrease) in equity equivalents to net income (loss) attributable to Las Vegas Sands Corp..

⁴ 2022 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 170 × 4.90% = 8

⁵ 2022 Calculation
Tax benefit of interest expense, net of amounts capitalized = Adjusted interest expense, net of amounts capitalized × Statutory income tax rate
= 710 × 21.00% = 149

⁶ Addition of after taxes interest expense to net income (loss) attributable to Las Vegas Sands Corp..

⁷ Elimination of discontinued operations.

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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.	Las Vegas Sands Corp. NOPAT increased from 2020 to 2021 and from 2021 to 2022.

Las Vegas Sands Corp., cash operating taxes calculation

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Income tax expense (benefit)	154)	(5)	(38)	468)	375)
Less: Deferred income tax expense (benefit)	(2)	(45)	(32)	157)	113)
Add: Tax savings from interest expense, net of amounts capitalized	149)	132)	116)	120)	108)
Cash operating taxes	305)	172)	110)	431)	370)

Based on: 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), 10-K (reporting date: 2018-12-31).

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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.	Las Vegas Sands Corp. cash operating taxes increased from 2020 to 2021 and from 2021 to 2022.

Las Vegas Sands Corp., invested capital calculation (financing approach)

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Current maturities of long-term debt	2,031)	74)	76)	70)	111)
Long-term debt, excluding current maturities	13,947)	14,721)	13,931)	12,422)	11,874)
Operating lease liability¹	170)	168)	323)	333)	1,314)
Total reported debt & leases	16,148)	14,963)	14,330)	12,825)	13,299)
Total Las Vegas Sands Corp. stockholders’ equity	3,881)	1,996)	2,973)	5,187)	5,684)
Net deferred tax (assets) liabilities²	21)	(124)	(130)	(99)	(177)
Provision for credit losses³	217)	232)	314)	282)	324)
Equity equivalents⁴	238)	108)	184)	183)	147)
Accumulated other comprehensive (income) loss, net of tax⁵	7)	22)	(29)	3)	40)
Noncontrolling interests	(225)	252)	565)	1,320)	1,061)
Adjusted total Las Vegas Sands Corp. stockholders’ equity	3,901)	2,378)	3,693)	6,693)	6,932)
Construction in progress⁶	(1,123)	(1,513)	(2,074)	(1,507)	(1,184)
Invested capital	18,926)	15,828)	15,949)	18,011)	19,047)

Based on: 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), 10-K (reporting date: 2018-12-31).

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 equity equivalents to total Las Vegas Sands Corp. stockholders’ equity.

⁵ Removal of accumulated other comprehensive income.

⁶ Subtraction of construction in progress.

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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.	Las Vegas Sands Corp. invested capital decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Las Vegas Sands Corp., cost of capital calculations

Dec 31, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	44,389)	44,389)	÷	59,699)	=	0.74	0.74	×	15.47%	=	11.50%
Long-term debt, including current maturities³	15,140)	15,140)	÷	59,699)	=	0.25	0.25	×	3.99% × (1 – 21.00%)	=	0.80%
Operating lease liability⁴	170)	170)	÷	59,699)	=	0.00	0.00	×	4.90% × (1 – 21.00%)	=	0.01%
Total:	59,699)					1.00					12.31%

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

¹ US$ in millions

² Equity. See details »

³ Long-term debt, including current maturities. See details »

⁴ Operating lease liability. See details »

Dec 31, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	33,768)	33,768)	÷	48,996)	=	0.69	0.69	×	15.47%	=	10.66%
Long-term debt, including current maturities³	15,060)	15,060)	÷	48,996)	=	0.31	0.31	×	3.99% × (1 – 21.00%)	=	0.97%
Operating lease liability⁴	168)	168)	÷	48,996)	=	0.00	0.00	×	4.90% × (1 – 21.00%)	=	0.01%
Total:	48,996)					1.00					11.65%

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

¹ US$ in millions

² Equity. See details »

³ Long-term debt, including current maturities. See details »

⁴ Operating lease liability. See details »

Dec 31, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	42,447)	42,447)	÷	57,920)	=	0.73	0.73	×	15.47%	=	11.34%
Long-term debt, including current maturities³	15,150)	15,150)	÷	57,920)	=	0.26	0.26	×	4.30% × (1 – 21.00%)	=	0.89%
Operating lease liability⁴	323)	323)	÷	57,920)	=	0.01	0.01	×	4.60% × (1 – 21.00%)	=	0.02%
Total:	57,920)					1.00					12.25%

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

¹ US$ in millions

² Equity. See details »

³ Long-term debt, including current maturities. See details »

⁴ Operating lease liability. See details »

Dec 31, 2019

	Capital (fair value)¹	Weights					Cost of capital
Equity²	51,014)	51,014)	÷	64,557)	=	0.79	0.79	×	15.47%	=	12.23%
Long-term debt, including current maturities³	13,210)	13,210)	÷	64,557)	=	0.20	0.20	×	4.34% × (1 – 21.00%)	=	0.70%
Operating lease liability⁴	333)	333)	÷	64,557)	=	0.01	0.01	×	4.60% × (1 – 21.00%)	=	0.02%
Total:	64,557)					1.00					12.95%

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

¹ US$ in millions

² Equity. See details »

³ Long-term debt, including current maturities. See details »

⁴ Operating lease liability. See details »

Dec 31, 2018

	Capital (fair value)¹	Weights					Cost of capital
Equity²	47,751)	47,751)	÷	60,715)	=	0.79	0.79	×	15.47%	=	12.17%
Long-term debt, including current maturities³	11,650)	11,650)	÷	60,715)	=	0.19	0.19	×	5.05% × (1 – 21.00%)	=	0.77%
Operating lease liability⁴	1,314)	1,314)	÷	60,715)	=	0.02	0.02	×	5.05% × (1 – 21.00%)	=	0.09%
Total:	60,715)					1.00					13.02%

Based on: 10-K (reporting date: 2018-12-31).

¹ US$ in millions

² Equity. See details »

³ Long-term debt, including current maturities. See details »

⁴ Operating lease liability. See details »

Las Vegas Sands Corp., economic spread ratio calculation, comparison to benchmarks

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in millions)
Economic profit¹	(3,328)	(2,883)	(3,661)	1,538)	871)
Invested capital²	18,926)	15,828)	15,949)	18,011)	19,047)
Performance Ratio
Economic spread ratio³	-17.58%	-18.22%	-22.96%	8.54%	4.57%
Benchmarks
Economic Spread Ratio, Competitors⁴
Airbnb Inc.	13.80%	-8.46%	-114.76%	—	—
Booking Holdings Inc.	5.26%	-12.16%	-11.83%	29.82%	—
Chipotle Mexican Grill Inc.	2.92%	-1.77%	-3.80%	-3.53%	—
McDonald’s Corp.	5.64%	8.07%	3.83%	8.06%	—
Starbucks Corp.	6.39%	7.65%	-5.05%	-0.65%	—

Based on: 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), 10-K (reporting date: 2018-12-31).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2022 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -3,328 ÷ 18,926 = -17.58%

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.	Las Vegas Sands Corp. economic spread ratio improved from 2020 to 2021 and from 2021 to 2022.

Las Vegas Sands Corp., economic profit margin calculation, comparison to benchmarks

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in millions)
Economic profit¹	(3,328)	(2,883)	(3,661)	1,538)	871)
Net revenues	4,110)	4,234)	3,612)	13,739)	13,729)
Performance Ratio
Economic profit margin²	-80.96%	-68.10%	-101.36%	11.19%	6.34%
Benchmarks
Economic Profit Margin, Competitors³
Airbnb Inc.	10.89%	-7.61%	-175.71%	—	—
Booking Holdings Inc.	4.20%	-16.65%	-25.36%	21.82%	—
Chipotle Mexican Grill Inc.	1.82%	-1.28%	-3.12%	-2.66%	—
McDonald’s Corp.	11.05%	16.58%	9.32%	16.28%	—
Starbucks Corp.	4.07%	6.23%	-4.92%	-0.50%	—

Based on: 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), 10-K (reporting date: 2018-12-31).

¹ Economic profit. See details »

² 2022 Calculation
Economic profit margin = 100 × Economic profit ÷ Net revenues
= 100 × -3,328 ÷ 4,110 = -80.96%

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.	Las Vegas Sands Corp. economic profit margin improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Las Vegas Sands Corp. (NYSE:LVS)

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