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
Boeing Co., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Boeing Co. market (fair) value less invested capital. | Boeing Co. MVA increased from 2022 to 2023 but then decreased significantly from 2023 to 2024. |
MVA Spread Ratio
Boeing Co., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 122,556) | 133,648) | 127,534) | 126,686) | 122,779) | |
| Invested capital2 | 50,250) | 44,883) | 50,833) | 49,413) | 47,630) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 243.89% | 297.77% | 250.89% | 256.38% | 257.78% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Caterpillar Inc. | 252.29% | 247.08% | 194.33% | 165.08% | 177.78% | |
| Eaton Corp. plc | 281.62% | 289.43% | 149.39% | 132.30% | 124.83% | |
| GE Aerospace | 534.86% | 243.60% | 84.87% | 110.77% | 64.66% | |
| Honeywell International Inc. | 169.63% | 211.09% | 224.23% | 209.78% | 236.48% | |
| Lockheed Martin Corp. | 341.89% | 352.46% | 399.68% | 319.28% | 284.59% | |
| RTX Corp. | 92.50% | 48.99% | 54.30% | 57.80% | 31.41% | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 122,556 ÷ 50,250 = 243.89%
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. | Boeing Co. MVA spread ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
MVA Margin
Boeing Co., MVA margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 122,556) | 133,648) | 127,534) | 126,686) | 122,779) | |
| Revenues | 66,517) | 77,794) | 66,608) | 62,286) | 58,158) | |
| Performance Ratio | ||||||
| MVA margin2 | 184.25% | 171.80% | 191.47% | 203.39% | 211.11% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Caterpillar Inc. | 236.49% | 214.78% | 188.24% | 190.31% | 246.13% | |
| Eaton Corp. plc | 361.50% | 392.00% | 221.57% | 198.58% | 191.64% | |
| GE Aerospace | 574.17% | 189.55% | 76.94% | 111.81% | 103.34% | |
| Honeywell International Inc. | 265.73% | 278.88% | 295.90% | 293.22% | 350.74% | |
| Lockheed Martin Corp. | 138.52% | 143.06% | 161.14% | 136.30% | 122.08% | |
| RTX Corp. | 127.55% | 79.64% | 91.75% | 102.95% | 64.17% | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Revenues
= 100 × 122,556 ÷ 66,517 = 184.25%
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. | Boeing Co. MVA margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |