Market Value Added (MVA)
Market value added (MVA) is the difference between a firm fair value and its invested capital. MVA is a measure of the value a company has created in excess of the resources already committed to the enterprise.
MVA
Amazon.com Inc., MVA calculation
US$ in millions
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 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Amazon.com Inc. market (fair) value less invested capital. | Amazon.com Inc. MVA decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
MVA Spread Ratio
Amazon.com Inc., MVA 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) | ||||||
| Market value added (MVA)1 | 1,593,625) | 921,233) | 1,477,806) | 1,581,832) | 933,814) | |
| Invested capital2 | 326,668) | 269,358) | 202,836) | 150,160) | 127,843) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 487.84% | 342.01% | 728.57% | 1,053.43% | 730.44% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Home Depot Inc. | 519.24% | 681.54% | 631.50% | 547.47% | 617.70% | |
| Lowe’s Cos. Inc. | 500.68% | 587.76% | 457.91% | 186.58% | 334.01% | |
| TJX Cos. Inc. | 393.67% | 333.18% | 327.36% | 261.07% | 334.48% | |
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 MVA. See details »
2 Invested capital. See details »
3 2023 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 1,593,625 ÷ 326,668 = 487.84%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| MVA spread ratio | The ratio of MVA to invested capital. It measures the efficiency with which investors’ capital investment has translated into a franchise value and into an aggregate net present value premium. | Amazon.com Inc. MVA spread ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
MVA Margin
Amazon.com Inc., MVA 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) | ||||||
| Market value added (MVA)1 | 1,593,625) | 921,233) | 1,477,806) | 1,581,832) | 933,814) | |
| Net sales | 574,785) | 513,983) | 469,822) | 386,064) | 280,522) | |
| Add: Increase (decrease) in unearned revenue | 4,800) | 2,100) | 2,419) | 1,418) | 2,254) | |
| Adjusted net sales | 579,585) | 516,083) | 472,241) | 387,482) | 282,776) | |
| Performance Ratio | ||||||
| MVA margin2 | 274.96% | 178.50% | 312.93% | 408.23% | 330.23% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Home Depot Inc. | 182.42% | 216.66% | 237.60% | 181.62% | 195.15% | |
| Lowe’s Cos. Inc. | 127.78% | 159.89% | 145.00% | 69.10% | 115.18% | |
| TJX Cos. Inc. | 160.74% | 135.17% | 227.93% | 116.99% | 149.26% | |
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 MVA. See details »
2 2023 Calculation
MVA margin = 100 × MVA ÷ Adjusted net sales
= 100 × 1,593,625 ÷ 579,585 = 274.96%
3 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| MVA margin | The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value. | Amazon.com Inc. MVA margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |