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
Honeywell International Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Honeywell International Inc. market (fair) value less invested capital. | Honeywell International Inc. MVA decreased from 2022 to 2023 but then slightly increased from 2023 to 2024. |
MVA Spread Ratio
Honeywell International Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 102,370) | 101,633) | 106,133) | 101,426) | 116,184) | |
| Invested capital2 | 60,349) | 48,147) | 47,332) | 48,349) | 49,130) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 169.63% | 211.09% | 224.23% | 209.78% | 236.48% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Boeing Co. | 243.89% | 297.77% | 250.89% | 256.38% | 257.78% | |
| Caterpillar Inc. | 252.29% | 247.08% | 194.33% | 165.08% | 177.78% | |
| Eaton Corp. plc | — | 289.43% | 149.39% | 132.30% | 124.83% | |
| GE Aerospace | 534.86% | 243.60% | 84.87% | 110.77% | 64.66% | |
| Lockheed Martin Corp. | 341.89% | 352.46% | 399.68% | 319.28% | 284.59% | |
| RTX Corp. | 92.50% | 48.99% | 54.30% | 57.80% | 31.41% | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 102,370 ÷ 60,349 = 169.63%
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. | Honeywell International Inc. MVA spread ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
MVA Margin
Honeywell International Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 102,370) | 101,633) | 106,133) | 101,426) | 116,184) | |
| Net sales | 38,498) | 36,662) | 35,466) | 34,392) | 32,637) | |
| Add: Increase (decrease) in customer advances and deferred income | 26) | (219) | 402) | 199) | 488) | |
| Adjusted net sales | 38,524) | 36,443) | 35,868) | 34,591) | 33,125) | |
| Performance Ratio | ||||||
| MVA margin2 | 265.73% | 278.88% | 295.90% | 293.22% | 350.74% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Boeing Co. | 184.25% | 171.80% | 191.47% | 203.39% | 211.11% | |
| Caterpillar Inc. | 236.49% | 214.78% | 188.24% | 190.31% | 246.13% | |
| Eaton Corp. plc | — | 392.00% | 221.57% | 198.58% | 191.64% | |
| GE Aerospace | 574.17% | 189.55% | 76.94% | 111.81% | 103.34% | |
| Lockheed Martin Corp. | 138.52% | 143.06% | 161.14% | 136.30% | 122.08% | |
| RTX Corp. | 127.55% | 79.64% | 91.75% | 102.95% | 64.17% | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Adjusted net sales
= 100 × 102,370 ÷ 38,524 = 265.73%
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. | Honeywell International Inc. MVA margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |