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
Automatic Data Processing Inc., MVA calculation
US$ in thousands
Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Automatic Data Processing Inc. market (fair) value less invested capital. | Automatic Data Processing Inc. MVA decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
MVA Spread Ratio
Automatic Data Processing Inc., MVA spread ratio calculation, comparison to benchmarks
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Market value added (MVA)1 | 83,035,278) | 50,939,138) | 65,925,332) | 53,986,010) | 44,468,604) | 35,546,487) | |
| Invested capital2 | 10,152,600) | 9,580,300) | 9,463,158) | 7,289,794) | 7,519,836) | 7,921,908) | |
| Performance Ratio | |||||||
| MVA spread ratio3 | 817.87% | 531.71% | 696.65% | 740.57% | 591.35% | 448.71% | |
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Accenture PLC | 739.74% | 550.21% | 505.40% | — | — | — | |
| Adobe Inc. | 1,033.13% | 1,082.99% | 884.94% | — | — | — | |
| Cadence Design Systems Inc. | 1,110.87% | 1,232.57% | 792.57% | — | — | — | |
| CrowdStrike Holdings Inc. | 1,618.34% | 1,449.48% | — | — | — | — | |
| International Business Machines Corp. | 54.96% | 39.12% | 47.78% | — | — | — | |
| Intuit Inc. | 1,175.12% | 976.09% | 1,553.30% | — | — | — | |
| Microsoft Corp. | 1,383.21% | 1,315.93% | 962.41% | — | — | — | |
| Oracle Corp. | 260.27% | 180.84% | 220.64% | — | — | — | |
| Palantir Technologies Inc. | 829.78% | 1,919.83% | — | — | — | — | |
| Palo Alto Networks Inc. | 573.51% | 267.94% | 424.83% | — | — | — | |
| Salesforce Inc. | 270.75% | 226.93% | 326.41% | — | — | — | |
| ServiceNow Inc. | 1,798.18% | 2,575.52% | 2,192.76% | — | — | — | |
| Synopsys Inc. | 707.79% | 468.10% | 272.11% | — | — | — | |
Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).
1 MVA. See details »
2 Invested capital. See details »
3 2021 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 83,035,278 ÷ 10,152,600 = 817.87%
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. | Automatic Data Processing Inc. MVA spread ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
MVA Margin
Automatic Data Processing Inc., MVA margin calculation, comparison to benchmarks
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Market value added (MVA)1 | 83,035,278) | 50,939,138) | 65,925,332) | 53,986,010) | 44,468,604) | 35,546,487) | |
| Revenues | 15,005,400) | 14,589,800) | 14,175,200) | 13,325,800) | 12,379,800) | 11,667,800) | |
| Add: Increase (decrease) in deferred revenues | (16,800) | (36,900) | (53,800) | (20,000) | 10,000) | 23,000) | |
| Adjusted revenues | 14,988,600) | 14,552,900) | 14,121,400) | 13,305,800) | 12,389,800) | 11,690,800) | |
| Performance Ratio | |||||||
| MVA margin2 | 553.99% | 350.03% | 466.85% | 405.73% | 358.91% | 304.06% | |
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Accenture PLC | 379.26% | 279.96% | 233.58% | — | — | — | |
| Adobe Inc. | 1,287.44% | 1,554.19% | 1,330.31% | — | — | — | |
| Cadence Design Systems Inc. | 1,128.47% | 1,241.37% | 769.46% | — | — | — | |
| CrowdStrike Holdings Inc. | 3,362.60% | 1,272.66% | — | — | — | — | |
| International Business Machines Corp. | 104.85% | 68.01% | 81.54% | — | — | — | |
| Intuit Inc. | 1,489.94% | 1,098.60% | 1,034.92% | — | — | — | |
| Microsoft Corp. | 1,148.11% | 976.86% | 711.95% | — | — | — | |
| Oracle Corp. | 514.72% | 411.93% | 401.82% | — | — | — | |
| Palantir Technologies Inc. | 1,366.76% | 3,910.89% | — | — | — | — | |
| Palo Alto Networks Inc. | 771.73% | 434.98% | 469.70% | — | — | — | |
| Salesforce Inc. | 620.94% | 558.53% | 642.57% | — | — | — | |
| ServiceNow Inc. | 1,555.49% | 2,101.04% | 1,606.91% | — | — | — | |
| Synopsys Inc. | 1,126.17% | 803.94% | 470.26% | — | — | — | |
Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).
1 MVA. See details »
2 2021 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenues
= 100 × 83,035,278 ÷ 14,988,600 = 553.99%
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. | Automatic Data Processing Inc. MVA margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |