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
Albemarle Corp., MVA calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2018-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Albemarle Corp. market (fair) value less invested capital. | Albemarle Corp. MVA increased from 2020 to 2021 and from 2021 to 2022. |
MVA Spread Ratio
Albemarle Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | 24,954,394) | 18,310,156) | 14,916,292) | 5,635,107) | 6,329,517) | |
| Invested capital2 | 10,052,399) | 6,792,146) | 7,383,741) | 6,900,307) | 5,433,093) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 248.24% | 269.58% | 202.02% | 81.66% | 116.50% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Linde plc | 162.37% | 128.35% | 92.56% | — | — | |
| Sherwin-Williams Co. | 296.84% | 418.72% | 389.31% | — | — | |
Based on: 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), 10-K (reporting date: 2018-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2022 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 24,954,394 ÷ 10,052,399 = 248.24%
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. | Albemarle Corp. MVA spread ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
MVA Margin
Albemarle Corp., MVA margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | 24,954,394) | 18,310,156) | 14,916,292) | 5,635,107) | 6,329,517) | |
| Net sales | 7,320,104) | 3,327,957) | 3,128,909) | 3,589,427) | 3,374,950) | |
| Performance Ratio | ||||||
| MVA margin2 | 340.90% | 550.19% | 476.73% | 156.99% | 187.54% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Linde plc | 352.06% | 302.43% | 267.64% | — | — | |
| Sherwin-Williams Co. | 232.48% | 331.88% | 328.41% | — | — | |
Based on: 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), 10-K (reporting date: 2018-12-31).
1 MVA. See details »
2 2022 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × 24,954,394 ÷ 7,320,104 = 340.90%
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. | Albemarle Corp. MVA margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |