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
Cisco Systems Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Cisco Systems Inc. market (fair) value less invested capital. | Cisco Systems Inc. MVA increased from 2022 to 2023 but then decreased significantly from 2023 to 2024. |
MVA Spread Ratio
Cisco Systems Inc., MVA spread ratio calculation, comparison to benchmarks
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 126,460) | 164,993) | 126,513) | 189,224) | 120,653) | 157,813) | |
| Invested capital2 | 91,785) | 58,979) | 59,063) | 57,460) | 53,498) | 53,469) | |
| Performance Ratio | |||||||
| MVA spread ratio3 | 137.78% | 279.75% | 214.20% | 329.31% | 225.53% | 295.15% | |
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Apple Inc. | 6,597.47% | 4,423.16% | 5,157.62% | 5,626.48% | 4,945.07% | 2,012.85% | |
| Arista Networks Inc. | — | 1,572.10% | 1,223.83% | 1,867.28% | 1,067.73% | 782.88% | |
| Super Micro Computer Inc. | — | 466.63% | 91.12% | 50.17% | 20.30% | 2.42% | |
Based on: 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 126,460 ÷ 91,785 = 137.78%
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. | Cisco Systems Inc. MVA spread ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
MVA Margin
Cisco Systems Inc., MVA margin calculation, comparison to benchmarks
| Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 126,460) | 164,993) | 126,513) | 189,224) | 120,653) | 157,813) | |
| Revenue | 53,803) | 56,998) | 51,557) | 49,818) | 49,301) | 51,904) | |
| Add: Increase (decrease) in deferred revenue | 2,925) | 2,286) | 1,100) | 1,718) | 1,979) | (1,218) | |
| Adjusted revenue | 56,728) | 59,284) | 52,657) | 51,536) | 51,280) | 50,686) | |
| Performance Ratio | |||||||
| MVA margin2 | 222.92% | 278.31% | 240.26% | 367.17% | 235.28% | 311.35% | |
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Apple Inc. | 843.30% | 695.76% | 609.53% | 653.71% | 648.08% | 392.95% | |
| Arista Networks Inc. | — | 1,189.21% | 844.68% | 1,096.71% | 834.74% | 575.84% | |
| Super Micro Computer Inc. | — | 158.10% | 38.75% | 18.09% | 7.53% | 0.78% | |
Based on: 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenue
= 100 × 126,460 ÷ 56,728 = 222.92%
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. | Cisco Systems Inc. MVA margin ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |