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
Arista Networks 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).
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Arista Networks Inc. market (fair) value less invested capital. | Arista Networks Inc. MVA increased from 2021 to 2022 and from 2022 to 2023. |
MVA Spread Ratio
Arista Networks 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 | 75,222,009) | 37,959,445) | 35,391,643) | 19,981,831) | 13,816,226) | |
| Invested capital2 | 4,784,625) | 3,101,194) | 1,895,024) | 1,870,862) | 1,764,403) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 1,572.16% | 1,224.03% | 1,867.61% | 1,068.05% | 783.05% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Apple Inc. | 4,423.16% | 5,157.62% | 5,626.48% | 4,945.07% | 2,012.85% | |
| Cisco Systems Inc. | 279.75% | 214.20% | 329.31% | 225.53% | 295.15% | |
| Dell Technologies Inc. | 2.11% | 31.48% | 53.40% | 12.25% | 28.34% | |
| Super Micro Computer Inc. | 466.63% | 91.12% | 50.17% | 20.30% | 2.42% | |
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 × 75,222,009 ÷ 4,784,625 = 1,572.16%
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. | Arista Networks Inc. MVA spread ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
MVA Margin
Arista Networks 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 | 75,222,009) | 37,959,445) | 35,391,643) | 19,981,831) | 13,816,226) | |
| Revenue | 5,860,168) | 4,381,310) | 2,948,037) | 2,317,512) | 2,410,706) | |
| Add: Increase (decrease) in deferred revenue | 464,958) | 111,934) | 278,485) | 75,539) | (11,939) | |
| Adjusted revenue | 6,325,126) | 4,493,244) | 3,226,522) | 2,393,051) | 2,398,767) | |
| Performance Ratio | ||||||
| MVA margin2 | 1,189.26% | 844.81% | 1,096.90% | 834.99% | 575.97% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Apple Inc. | 695.76% | 609.53% | 653.71% | 648.08% | 392.95% | |
| Cisco Systems Inc. | 278.31% | 240.26% | 367.17% | 235.28% | 311.35% | |
| Dell Technologies Inc. | 1.17% | 16.47% | 45.88% | 10.39% | 24.30% | |
| Super Micro Computer Inc. | 158.10% | 38.75% | 18.09% | 7.53% | 0.78% | |
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 revenue
= 100 × 75,222,009 ÷ 6,325,126 = 1,189.26%
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. | Arista Networks Inc. MVA margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |