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
3M Co., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | 3M Co. market (fair) value less invested capital. | 3M Co. MVA increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
MVA Spread Ratio
3M Co., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 74,004) | 85,591) | 77,239) | 98,976) | 114,909) | |
| Invested capital2 | 39,156) | 38,880) | 38,698) | 31,616) | 32,308) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 189.00% | 220.14% | 199.60% | 313.06% | 355.67% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Boeing Co. | 256.38% | 257.78% | — | — | — | |
| Caterpillar Inc. | 165.08% | 177.78% | — | — | — | |
| Eaton Corp. plc | 132.30% | 124.83% | 66.62% | — | — | |
| GE Aerospace | 110.77% | 64.66% | — | — | — | |
| Honeywell International Inc. | 209.78% | 236.48% | — | — | — | |
| Lockheed Martin Corp. | 319.28% | 284.59% | — | — | — | |
| RTX Corp. | 57.80% | 31.41% | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2021 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 74,004 ÷ 39,156 = 189.00%
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. | 3M Co. MVA spread ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
MVA Margin
3M Co., MVA margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 74,004) | 85,591) | 77,239) | 98,976) | 114,909) | |
| Net sales | 35,355) | 32,184) | 32,136) | 32,765) | 31,657) | |
| Add: Increase (decrease) in deferred revenue | 31) | 68) | (187) | 104) | (16) | |
| Adjusted net sales | 35,386) | 32,252) | 31,949) | 32,869) | 31,641) | |
| Performance Ratio | ||||||
| MVA margin2 | 209.13% | 265.38% | 241.76% | 301.12% | 363.16% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Boeing Co. | 203.39% | 211.11% | — | — | — | |
| Caterpillar Inc. | 190.31% | 246.13% | — | — | — | |
| Eaton Corp. plc | 198.58% | 191.64% | 91.84% | — | — | |
| GE Aerospace | 111.81% | 103.34% | — | — | — | |
| Honeywell International Inc. | 293.22% | 350.74% | — | — | — | |
| Lockheed Martin Corp. | 136.30% | 122.08% | — | — | — | |
| RTX Corp. | 102.95% | 64.17% | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 MVA. See details »
2 2021 Calculation
MVA margin = 100 × MVA ÷ Adjusted net sales
= 100 × 74,004 ÷ 35,386 = 209.13%
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. | 3M Co. MVA margin ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |