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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

Walt Disney Co., economic profit calculation

US$ in millions

12 months ended:	Sep 28, 2024	Sep 30, 2023	Oct 1, 2022	Oct 2, 2021	Oct 3, 2020	Sep 28, 2019
Net operating profit after taxes (NOPAT)¹	6,260)	3,406)	6,699)	2,215)	(2,053)	16,211)
Cost of capital²	14.11%	13.92%	13.67%	13.90%	13.72%	14.30%
Invested capital³	166,066)	173,764)	173,977)	172,934)	174,594)	169,178)

Economic profit⁴	(17,165)	(20,785)	(17,086)	(21,822)	(26,003)	(7,981)

Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28).

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
= 6,260 – 14.11% × 166,066 = -17,165

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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.	Walt Disney Co. economic profit decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.

Walt Disney Co., NOPAT calculation

US$ in millions

12 months ended:	Sep 28, 2024	Sep 30, 2023	Oct 1, 2022	Oct 2, 2021	Oct 3, 2020	Sep 28, 2019
Net income (loss) attributable to The Walt Disney Company (Disney)	4,972)	2,354)	3,145)	1,995)	(2,864)	11,054)
Deferred income tax expense (benefit)¹	(807)	(1,365)	168)	(1,252)	(275)	2,081)
Increase (decrease) in allowance for credit losses²	(32)	(43)	(12)	(256)	83)	103)
Increase (decrease) in deferred revenues³	(100)	87)	1,810)	447)	(468)	1,134)
Increase (decrease) in restructuring reserves⁴	—)	—)	(50)	(307)	(319)	676)
Increase (decrease) in equity equivalents⁵	(939)	(1,321)	1,916)	(1,368)	(979)	3,994)
Interest expense	2,070)	1,973)	1,549)	1,546)	1,647)	1,246)
Interest expense, operating lease liability⁶	140)	144)	98)	87)	85)	404)
Adjusted interest expense	2,210)	2,117)	1,647)	1,633)	1,732)	1,650)
Tax benefit of interest expense⁷	(464)	(445)	(346)	(343)	(364)	(347)
Adjusted interest expense, after taxes⁸	1,746)	1,672)	1,301)	1,290)	1,368)	1,304)
Interest income, investment income and other	(406)	(424)	(90)	(307)	—)	—)
Investment income, before taxes	(406)	(424)	(90)	(307)	—)	—)
Tax expense (benefit) of investment income⁹	85)	89)	19)	64)	—)	—)
Investment income, after taxes¹⁰	(321)	(335)	(71)	(243)	—)	—)
(Income) loss from discontinued operations, net of tax¹¹	—)	—)	48)	29)	32)	(671)
Net income (loss) attributable to noncontrolling interest	801)	1,036)	360)	512)	390)	530)
Net operating profit after taxes (NOPAT)	6,260)	3,406)	6,699)	2,215)	(2,053)	16,211)

Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28).

¹ Elimination of deferred tax expense. See details »

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

³ Addition of increase (decrease) in deferred revenues.

⁴ Addition of increase (decrease) in restructuring reserves.

⁵ Addition of increase (decrease) in equity equivalents to net income (loss) attributable to The Walt Disney Company (Disney).

⁶ 2024 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 3,512 × 4.00% = 140

⁷ 2024 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 2,210 × 21.00% = 464

⁸ Addition of after taxes interest expense to net income (loss) attributable to The Walt Disney Company (Disney).

⁹ 2024 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 406 × 21.00% = 85

¹⁰ Elimination of after taxes investment income.

¹¹ 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.	Walt Disney Co. NOPAT decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.

Walt Disney Co., cash operating taxes calculation

US$ in millions

12 months ended:	Sep 28, 2024	Sep 30, 2023	Oct 1, 2022	Oct 2, 2021	Oct 3, 2020	Sep 28, 2019
Income tax expense on income from continuing operations	1,796)	1,379)	1,732)	25)	699)	3,031)
Less: Deferred income tax expense (benefit)	(807)	(1,365)	168)	(1,252)	(275)	2,081)
Add: Tax savings from interest expense	464)	445)	346)	343)	364)	347)
Less: Tax imposed on investment income	85)	89)	19)	64)	—)	—)
Cash operating taxes	2,982)	3,100)	1,891)	1,555)	1,338)	1,297)

Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28).

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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.	Walt Disney Co. cash operating taxes increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Walt Disney Co., invested capital calculation (financing approach)

US$ in millions

	Sep 28, 2024	Sep 30, 2023	Oct 1, 2022	Oct 2, 2021	Oct 3, 2020	Sep 28, 2019
Short-term finance lease liabilities	30)	37)	37)	41)	37)	5)
Current portion of borrowings	6,845)	4,330)	3,070)	5,866)	5,711)	8,857)
Borrowings, excluding current portion	38,970)	42,101)	45,299)	48,540)	52,917)	38,129)
Long-term finance lease liabilities	160)	206)	219)	246)	271)	146)
Operating lease liability¹	3,512)	3,998)	3,634)	3,620)	3,387)	3,704)
Total reported debt & leases	49,517)	50,672)	52,259)	58,313)	62,323)	50,841)
Total Disney Shareholder’s equity	100,696)	99,277)	95,008)	88,553)	83,583)	88,877)
Net deferred tax (assets) liabilities²	5,622)	6,587)	7,727)	6,560)	6,959)	7,492)
Allowance for credit losses³	83)	115)	158)	170)	426)	295)
Deferred revenues⁴	6,445)	6,545)	6,458)	4,648)	4,201)	4,669)
Restructuring reserves⁵	—)	—)	—)	50)	357)	676)
Equity equivalents⁶	12,150)	13,247)	14,343)	11,428)	11,943)	13,132)
Accumulated other comprehensive (income) loss, net of tax⁷	3,699)	3,292)	4,119)	6,440)	8,322)	6,617)
Redeemable noncontrolling interests	—)	9,055)	9,499)	9,213)	9,249)	8,963)
Noncontrolling interests	4,826)	4,680)	3,871)	4,458)	4,680)	5,012)
Adjusted total Disney Shareholder’s equity	121,371)	129,551)	126,840)	120,092)	117,777)	122,601)
Projects in progress⁸	(4,728)	(6,285)	(4,814)	(4,521)	(4,449)	(4,264)
Investments recorded at fair value⁹	(94)	(174)	(308)	(950)	(1,057)	—)
Invested capital	166,066)	173,764)	173,977)	172,934)	174,594)	169,178)

Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28).

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 revenues.

⁵ Addition of restructuring reserves.

⁶ Addition of equity equivalents to total Disney Shareholder’s equity.

⁷ Removal of accumulated other comprehensive income.

⁸ Subtraction of projects in progress.

⁹ Subtraction of investments recorded at fair value.

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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.	Walt Disney Co. invested capital decreased from 2022 to 2023 and from 2023 to 2024.

Walt Disney Co., cost of capital calculations

Sep 28, 2024

	Capital (fair value)¹	Weights					Cost of capital
Equity²	197,610)	197,610)	÷	245,021)	=	0.81	0.81	×	16.59%	=	13.38%
Borrowings and finance lease liabilities³	43,899)	43,899)	÷	245,021)	=	0.18	0.18	×	4.80% × (1 – 21.00%)	=	0.68%
Operating lease liability⁴	3,512)	3,512)	÷	245,021)	=	0.01	0.01	×	4.00% × (1 – 21.00%)	=	0.05%
Total:	245,021)					1.00					14.11%

Based on: 10-K (reporting date: 2024-09-28).

¹ US$ in millions

² Equity. See details »

³ Borrowings and finance lease liabilities. See details »

⁴ Operating lease liability. See details »

Sep 30, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	172,873)	172,873)	÷	218,570)	=	0.79	0.79	×	16.59%	=	13.12%
Borrowings and finance lease liabilities³	41,699)	41,699)	÷	218,570)	=	0.19	0.19	×	4.96% × (1 – 21.00%)	=	0.75%
Operating lease liability⁴	3,998)	3,998)	÷	218,570)	=	0.02	0.02	×	3.60% × (1 – 21.00%)	=	0.05%
Total:	218,570)					1.00					13.92%

Based on: 10-K (reporting date: 2023-09-30).

¹ US$ in millions

² Equity. See details »

³ Borrowings and finance lease liabilities. See details »

⁴ Operating lease liability. See details »

Oct 1, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	172,676)	172,676)	÷	220,585)	=	0.78	0.78	×	16.59%	=	12.99%
Borrowings and finance lease liabilities³	44,275)	44,275)	÷	220,585)	=	0.20	0.20	×	4.09% × (1 – 21.00%)	=	0.65%
Operating lease liability⁴	3,634)	3,634)	÷	220,585)	=	0.02	0.02	×	2.70% × (1 – 21.00%)	=	0.04%
Total:	220,585)					1.00					13.67%

Based on: 10-K (reporting date: 2022-10-01).

¹ US$ in millions

² Equity. See details »

³ Borrowings and finance lease liabilities. See details »

⁴ Operating lease liability. See details »

Oct 2, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	275,084)	275,084)	÷	339,315)	=	0.81	0.81	×	16.59%	=	13.45%
Borrowings and finance lease liabilities³	60,611)	60,611)	÷	339,315)	=	0.18	0.18	×	3.04% × (1 – 21.00%)	=	0.43%
Operating lease liability⁴	3,620)	3,620)	÷	339,315)	=	0.01	0.01	×	2.40% × (1 – 21.00%)	=	0.02%
Total:	339,315)					1.00					13.90%

Based on: 10-K (reporting date: 2021-10-02).

¹ US$ in millions

² Equity. See details »

³ Borrowings and finance lease liabilities. See details »

⁴ Operating lease liability. See details »

Oct 3, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	269,925)	269,925)	÷	338,438)	=	0.80	0.80	×	16.59%	=	13.23%
Borrowings and finance lease liabilities³	65,126)	65,126)	÷	338,438)	=	0.19	0.19	×	3.06% × (1 – 21.00%)	=	0.47%
Operating lease liability⁴	3,387)	3,387)	÷	338,438)	=	0.01	0.01	×	2.50% × (1 – 21.00%)	=	0.02%
Total:	338,438)					1.00					13.72%

Based on: 10-K (reporting date: 2020-10-03).

¹ US$ in millions

² Equity. See details »

³ Borrowings and finance lease liabilities. See details »

⁴ Operating lease liability. See details »

Sep 28, 2019

	Capital (fair value)¹	Weights					Cost of capital
Equity²	264,826)	264,826)	÷	318,639)	=	0.83	0.83	×	16.59%	=	13.79%
Borrowings and finance lease liabilities³	50,109)	50,109)	÷	318,639)	=	0.16	0.16	×	3.30% × (1 – 21.00%)	=	0.41%
Operating lease liability⁴	3,704)	3,704)	÷	318,639)	=	0.01	0.01	×	10.91% × (1 – 21.00%)	=	0.10%
Total:	318,639)					1.00					14.30%

Based on: 10-K (reporting date: 2019-09-28).

¹ US$ in millions

² Equity. See details »

³ Borrowings and finance lease liabilities. See details »

⁴ Operating lease liability. See details »

Walt Disney Co., economic spread ratio calculation, comparison to benchmarks

	Sep 28, 2024	Sep 30, 2023	Oct 1, 2022	Oct 2, 2021	Oct 3, 2020	Sep 28, 2019
Selected Financial Data (US$ in millions)
Economic profit¹	(17,165)	(20,785)	(17,086)	(21,822)	(26,003)	(7,981)
Invested capital²	166,066)	173,764)	173,977)	172,934)	174,594)	169,178)
Performance Ratio
Economic spread ratio³	-10.34%	-11.96%	-9.82%	-12.62%	-14.89%	-4.72%
Benchmarks
Economic Spread Ratio, Competitors⁴
Alphabet Inc.	—	18.90%	15.81%	38.10%	19.34%	18.39%
Comcast Corp.	—	-2.42%	-6.89%	-1.87%	-3.52%	-1.47%
Meta Platforms Inc.	—	12.22%	5.86%	28.30%	19.51%	12.62%
Netflix Inc.	—	0.04%	-1.22%	3.10%	-2.30%	-4.11%

Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2024 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -17,165 ÷ 166,066 = -10.34%

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.	Walt Disney Co. economic spread ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

Walt Disney Co., economic profit margin calculation, comparison to benchmarks

	Sep 28, 2024	Sep 30, 2023	Oct 1, 2022	Oct 2, 2021	Oct 3, 2020	Sep 28, 2019
Selected Financial Data (US$ in millions)
Economic profit¹	(17,165)	(20,785)	(17,086)	(21,822)	(26,003)	(7,981)

Revenues	91,361)	88,898)	82,722)	67,418)	65,388)	69,570)
Add: Increase (decrease) in deferred revenues	(100)	87)	1,810)	447)	(468)	1,134)
Adjusted revenues	91,261)	88,985)	84,532)	67,865)	64,920)	70,704)
Performance Ratio
Economic profit margin²	-18.81%	-23.36%	-20.21%	-32.16%	-40.05%	-11.29%
Benchmarks
Economic Profit Margin, Competitors³
Alphabet Inc.	—	11.65%	9.74%	21.85%	12.95%	11.42%
Comcast Corp.	—	-4.18%	-12.18%	-3.67%	-7.60%	-2.91%
Meta Platforms Inc.	—	12.79%	5.11%	22.23%	18.35%	11.68%
Netflix Inc.	—	0.05%	-1.46%	3.62%	-2.71%	-4.89%

Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28).

¹ Economic profit. See details »

² 2024 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted revenues
= 100 × -17,165 ÷ 91,261 = -18.81%

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.	Walt Disney Co. economic profit margin deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Walt Disney Co. (NYSE:DIS)

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