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
Teradyne Inc., MVA calculation
US$ in thousands
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 | Teradyne Inc. market (fair) value less invested capital. | Teradyne Inc. MVA decreased from 2021 to 2022 and from 2022 to 2023. |
MVA Spread Ratio
Teradyne Inc., 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 thousands) | ||||||
| Market value added (MVA)1 | 13,175,548) | 13,208,929) | 15,852,922) | 21,051,234) | 9,076,763) | |
| Invested capital2 | 2,415,179) | 2,587,403) | 2,564,053) | 2,183,213) | 1,845,838) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 545.53% | 510.51% | 618.28% | 964.23% | 491.74% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Advanced Micro Devices Inc. | 370.13% | 119.87% | 2,219.60% | 2,281.37% | 1,656.68% | |
| Analog Devices Inc. | 117.77% | 103.56% | 117.94% | 210.89% | 164.19% | |
| Applied Materials Inc. | 671.06% | 515.59% | 815.05% | 555.54% | 482.20% | |
| Broadcom Inc. | 780.16% | 327.91% | 373.50% | 237.77% | 168.52% | |
| First Solar Inc. | 100.45% | 235.63% | 37.44% | 62.42% | 0.68% | |
| Intel Corp. | 136.50% | 56.17% | 138.47% | 204.49% | 286.44% | |
| KLA Corp. | 749.44% | 664.92% | 735.85% | 430.36% | 274.54% | |
| Lam Research Corp. | 511.24% | 404.86% | 617.12% | 423.64% | 264.87% | |
| Micron Technology Inc. | 65.44% | 17.24% | 80.72% | 54.74% | 45.95% | |
| NVIDIA Corp. | 2,593.21% | 3,533.65% | 2,455.53% | 1,247.78% | 1,774.44% | |
| Qualcomm Inc. | 331.81% | 372.61% | 739.14% | 815.45% | 438.33% | |
| Texas Instruments Inc. | 565.70% | 853.39% | 887.48% | 1,141.98% | 946.70% | |
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 × 13,175,548 ÷ 2,415,179 = 545.53%
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. | Teradyne Inc. MVA spread ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
MVA Margin
Teradyne Inc., 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 thousands) | ||||||
| Market value added (MVA)1 | 13,175,548) | 13,208,929) | 15,852,922) | 21,051,234) | 9,076,763) | |
| Revenues | 2,676,298) | 3,155,045) | 3,702,881) | 3,121,469) | 2,294,965) | |
| Add: Increase (decrease) in deferred revenue and customer advances | (56,330) | (7,690) | 8,085) | 42,171) | 40,389) | |
| Adjusted revenues | 2,619,968) | 3,147,355) | 3,710,966) | 3,163,640) | 2,335,354) | |
| Performance Ratio | ||||||
| MVA margin2 | 502.89% | 419.68% | 427.19% | 665.41% | 388.67% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Advanced Micro Devices Inc. | 944.62% | 297.25% | 836.71% | 1,019.76% | 838.80% | |
| Analog Devices Inc. | 422.86% | 388.08% | 757.72% | 685.43% | 502.84% | |
| Applied Materials Inc. | 449.88% | 297.74% | 520.10% | 422.74% | 334.35% | |
| Broadcom Inc. | 1,364.99% | 613.41% | 879.64% | 656.13% | 447.69% | |
| First Solar Inc. | 191.35% | 337.43% | 71.34% | 125.10% | 1.01% | |
| Intel Corp. | 231.83% | 78.99% | 155.07% | 215.26% | 320.84% | |
| KLA Corp. | 595.30% | 562.17% | 725.25% | 482.13% | 383.29% | |
| Lam Research Corp. | 448.86% | 298.83% | 497.71% | 492.91% | 285.01% | |
| Micron Technology Inc. | 225.16% | 29.56% | 135.02% | 108.00% | 76.12% | |
| NVIDIA Corp. | 2,051.63% | 2,368.66% | 1,919.74% | 1,616.28% | 724.42% | |
| Qualcomm Inc. | 291.70% | 248.18% | 445.16% | 615.38% | 387.14% | |
| Texas Instruments Inc. | 729.45% | 748.35% | 793.86% | 1,023.69% | 793.53% | |
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 ÷ Adjusted revenues
= 100 × 13,175,548 ÷ 2,619,968 = 502.89%
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. | Teradyne Inc. MVA margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |