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
MVA Spread Ratio
MVA Margin

Walgreens Boots Alliance Inc., MVA calculation

US$ in millions

	Aug 31, 2019	Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014
Fair value of borrowings¹	17,413)	14,240)	13,475)	20,088)	15,712)	4,556)
Operating lease liability	26,628)	26,624)	26,194)	27,480)	29,803)	27,399)
Market value of common equity	49,804)	67,296)	70,022)	87,768)	92,493)	57,213)
Preferred stock $.01 par value; none issued	—)	—)	—)	—)	—)	—)
Noncontrolling interests	640)	682)	808)	401)	439)	104)
Less: Available-for-sale investments	—)	1)	1)	32)	1,183)	887)
Market (fair) value of Walgreens Boots Alliance	94,484)	108,841)	110,499)	135,704)	137,264)	88,385)
Less: Invested capital²	77,429)	76,286)	76,485)	85,356)	80,730)	55,001)
MVA	17,056)	32,555)	34,013)	50,349)	56,534)	33,384)

Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).

¹ Fair value of debt. See details »

² Invested capital. See details »

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Item	Description	The company
MVA	Walgreens Boots Alliance Inc. market (fair) value less invested capital.	Walgreens Boots Alliance Inc. MVA decreased from 2017 to 2018 and from 2018 to 2019.

Walgreens Boots Alliance Inc., MVA spread ratio calculation, comparison to benchmarks

	Aug 31, 2019	Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014
Selected Financial Data (US$ in millions)
Market value added (MVA)¹	17,056)	32,555)	34,013)	50,349)	56,534)	33,384)
Invested capital²	77,429)	76,286)	76,485)	85,356)	80,730)	55,001)
Performance Ratio
MVA spread ratio³	22.03%	42.67%	44.47%	58.99%	70.03%	60.70%
Benchmarks
MVA Spread Ratio, Competitors⁴
Costco Wholesale Corp.	481.92%	—	—	—	—	—
Dollar General Corp.	129.61%	—	—	—	—	—
Target Corp.	106.62%	—	—	—	—	—
Walmart Inc.	124.63%	—	—	—	—	—

Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).

¹ MVA. See details »

² Invested capital. See details »

³ 2019 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 17,056 ÷ 77,429 = 22.03%

⁴ Click competitor name to see calculations.

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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.	Walgreens Boots Alliance Inc. MVA spread ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Walgreens Boots Alliance Inc., MVA margin calculation, comparison to benchmarks

	Aug 31, 2019	Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014
Selected Financial Data (US$ in millions)
Market value added (MVA)¹	17,056)	32,555)	34,013)	50,349)	56,534)	33,384)
Sales	136,866)	131,537)	118,214)	117,351)	103,444)	76,392)
Performance Ratio
MVA margin²	12.46%	24.75%	28.77%	42.90%	54.65%	43.70%
Benchmarks
MVA Margin, Competitors³
Costco Wholesale Corp.	77.31%	—	—	—	—	—
Dollar General Corp.	91.58%	—	—	—	—	—
Target Corp.	37.31%	—	—	—	—	—
Walmart Inc.	38.77%	—	—	—	—	—

Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).

¹ MVA. See details »

² 2019 Calculation
MVA margin = 100 × MVA ÷ Sales
= 100 × 17,056 ÷ 136,866 = 12.46%

³ Click competitor name to see calculations.

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Performance ratio	Description	The company
MVA margin	The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value.	Walgreens Boots Alliance Inc. MVA margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Walgreens Boots Alliance Inc. (NASDAQ:WBA)

Market Value Added (MVA)

MVA

MVA Spread Ratio

MVA Margin