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
Linde plc, 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 | Linde plc market (fair) value less invested capital. | Linde plc MVA increased from 2021 to 2022 and from 2022 to 2023. |
MVA Spread Ratio
Linde plc, 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 | 164,245) | 117,460) | 93,128) | 72,913) | 44,717) | |
| Invested capital2 | 73,409) | 72,341) | 72,560) | 78,771) | 78,533) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 223.74% | 162.37% | 128.35% | 92.56% | 56.94% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Sherwin-Williams Co. | 449.28% | 296.84% | 418.72% | 389.31% | 288.82% | |
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 × 164,245 ÷ 73,409 = 223.74%
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. | Linde plc MVA spread ratio improved from 2021 to 2022 and from 2022 to 2023. |
MVA Margin
Linde plc, 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 | 164,245) | 117,460) | 93,128) | 72,913) | 44,717) | |
| Sales | 32,854) | 33,364) | 30,793) | 27,243) | 28,228) | |
| Performance Ratio | ||||||
| MVA margin2 | 499.92% | 352.06% | 302.43% | 267.64% | 158.41% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Sherwin-Williams Co. | 319.89% | 232.48% | 331.88% | 328.41% | 264.87% | |
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 ÷ Sales
= 100 × 164,245 ÷ 32,854 = 499.92%
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. | Linde plc MVA margin ratio improved from 2021 to 2022 and from 2022 to 2023. |