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.
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- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
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MVA
Intuit Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Intuit
- The market value of Intuit exhibited a generally increasing trend from 2019 to 2024, rising from $75,159 million in 2019 to $180,766 million in 2024. The value peaked significantly in 2021 at $156,176 million but saw a decline in 2022 to $125,311 million before recovering and reaching its highest point in 2024. This fluctuation indicates periods of market volatility or changes in investor sentiment during the observed years.
- Invested capital
- The invested capital also showed a steady increase over the reported years. Starting at $4,546 million in 2019, it nearly doubled by 2020 to $8,690 million and continued to grow to $24,948 million in 2024. The most notable jump occurred between 2020 and 2022, with invested capital more than doubling from $8,690 million to $24,726 million, suggesting significant capital investment or asset acquisition during this period. The invested capital remained relatively stable between 2022 and 2024, indicating a plateau in capital expenditures.
- Market value added (MVA)
- Market value added demonstrated a pattern similar to the market value, reflecting the difference between the market value and invested capital. MVA increased markedly from $70,613 million in 2019 to a peak of $143,928 million in 2021. A decline followed in 2022 to $100,585 million, after which the MVA rose again to $155,818 million by 2024. The fluctuations in MVA correspond broadly to market value changes but reflect the additional perspective of capital efficiency and value creation over invested capital.
MVA Spread Ratio
Intuit Inc., MVA spread ratio calculation, comparison to benchmarks
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| MVA spread ratio3 | |||||||
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Microsoft Corp. | |||||||
| Oracle Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Workday Inc. | |||||||
Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added exhibited a generally increasing trend over the period analyzed. It started at 70,613 million US dollars in 2019, peaked significantly at 143,928 million US dollars in 2021, followed by a decline in 2022 to 100,585 million US dollars. However, the MVA rebounded thereafter, increasing to 136,013 million US dollars in 2023 and further to 155,818 million US dollars by 2024. This indicates strong growth momentum with some volatility.
- Invested Capital
- The invested capital showed a consistent upward trend throughout the timeframe. Starting from 4,546 million US dollars in 2019, it nearly doubled by 2020, reaching 8,690 million US dollars. The growth continued steadily, reaching 24,726 million US dollars in 2022, with a slight decrease to 23,712 million US dollars in 2023, before increasing again to 24,948 million US dollars in 2024. The relatively stable capital levels in the final years suggest a maturing investment base.
- MVA Spread Ratio
- The MVA spread ratio, which reflects the value created relative to invested capital, displayed a downward trend from a very high starting point of 1553.3% in 2019 to 976.09% in 2020. It then increased again in 2021 to 1175.12%, followed by a sharp decline to 406.8% in 2022. In the final two years, there was a recovery to 573.6% in 2023 and further to 624.57% in 2024. Despite this recovery, the spread ratio in the latter years remained significantly below the levels observed in the early period, which could indicate a relative reduction in efficiency of value creation compared to earlier years.
- Overall Analysis
- Overall, the data reveals substantial growth in market value added and invested capital over the five-year span, with some fluctuations in both metrics. The peak MVA in 2021 followed by a decline and subsequent recovery suggests sensitivity to market or operational factors. The invested capital’s steady increase demonstrates continued commitment to growth or expansion. The MVA spread ratio’s volatility and general decline suggest that while absolute value creation increased, the efficiency or return on invested capital experienced challenges during the period analyzed. This comprehensive view suggests a company that is expanding its capital base and market valuation, though with some variability in value generation efficiency.
MVA Margin
Intuit Inc., MVA margin calculation, comparison to benchmarks
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Net revenue | |||||||
| Add: Increase (decrease) in deferred revenue | |||||||
| Adjusted net revenue | |||||||
| Performance Ratio | |||||||
| MVA margin2 | |||||||
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Microsoft Corp. | |||||||
| Oracle Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Workday Inc. | |||||||
Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Adjusted net revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added shows a generally upward trend over the six-year period. Starting at $70,613 million in 2019, it increased significantly to $143,928 million in 2021, which represents the peak within this timeframe. A decrease occurred in 2022, falling to $100,585 million, followed by a recovery in the subsequent years, reaching $155,818 million by 2024. This fluctuation suggests some volatility, but the overall long-term trajectory is positive.
- Adjusted Net Revenue
- Adjusted net revenue exhibits steady growth across all years presented. It rises each year from $6,823 million in 2019 to $16,235 million in 2024. The revenue growth accelerates particularly from 2020 onward, with the most notable increases observed between 2020-2022 and continues to rise, indicating expanding operational performance and possibly increased sales or service pricing effectiveness.
- MVA Margin
- The MVA margin, expressed as a percentage, fluctuates notably during the period. It starts at 1034.92% in 2019, rising to a peak of 1489.94% in 2021. Afterwards, it declines sharply to 782.89% in 2022 but then partially recovers to 959.77% by 2024. This pattern implies that while the efficiency of generating market value from net revenue improved through 2021, there was a significant drop in 2022 followed by moderate improvement. The margin remained below its earlier peak but still higher than the starting point in 2019.
- Overall Insights
- The data reflects strong growth in adjusted net revenue, indicating operational success and sales expansion. The market value added experiences volatility but maintains an upward long-term trend, implying increasing shareholder value overall despite some interim declines. MVA margin fluctuations highlight variations in the company’s market value generation efficiency relative to revenue, suggesting possible impacts from external market conditions or internal performance factors around 2022, with subsequent partial recovery but not yet reaching previous highs.