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.
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Net Profit Margin since 2020
- Price to Book Value (P/BV) since 2020
- Analysis of Revenues
- Aggregate Accruals
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MVA
Carrier Global Corp., MVA calculation
US$ in millions
Based on: 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 »
- Market (fair) value of Carrier
- The market value exhibited an overall increasing trend from 2020 to 2021, rising from 44,626 million US dollars to 50,498 million US dollars, which indicates positive market sentiment or improved investor confidence during this period. However, in 2022, the market value decreased to 45,394 million US dollars, showing a contraction relative to the prior year but still remaining higher than the 2020 level.
- Invested capital
- The invested capital remained relatively stable in 2020 and 2021, with a slight decrease from 19,032 million US dollars to 18,835 million US dollars. In 2022, invested capital increased to 19,880 million US dollars, surpassing previous levels. This suggests renewed investment or asset acquisition during the last year under review.
- Market value added (MVA)
- Market value added showed a similar pattern to the market value. It increased substantially from 25,594 million US dollars in 2020 to 31,663 million US dollars in 2021, reflecting enhanced value creation over invested capital. By 2022, MVA decreased to 25,514 million US dollars, which aligns with the drop in market value and implies a reduction in market-perceived value creation relative to invested capital, though still above the 2020 baseline.
MVA Spread Ratio
Carrier Global Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Market value added (MVA)1 | ||||
| Invested capital2 | ||||
| Performance Ratio | ||||
| MVA spread ratio3 | ||||
| Benchmarks | ||||
| MVA Spread Ratio, Competitors4 | ||||
| Boeing Co. | ||||
| Caterpillar Inc. | ||||
| Eaton Corp. plc | ||||
| GE Aerospace | ||||
| Honeywell International Inc. | ||||
| Lockheed Martin Corp. | ||||
| RTX Corp. | ||||
Based on: 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 2022 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added increased from 25,594 million USD at the end of 2020 to 31,663 million USD at the end of 2021, indicating a positive investor perception and enhanced market value during this period. However, in 2022, the MVA decreased to 25,514 million USD, nearly returning to the 2020 level. This decline suggests a reduction in market confidence or valuation adjustments after the peak in 2021.
- Invested Capital
- Invested capital remained relatively stable between 2020 and 2021, decreasing slightly from 19,032 million USD to 18,835 million USD. In 2022, there was an increase to 19,880 million USD, indicating a renewed or increased allocation of capital into the business. This rise could reflect investments in assets, expansion efforts, or operational needs.
- MVA Spread Ratio
- The MVA spread ratio experienced notable fluctuations. Starting at 134.48% in 2020, it rose significantly to 168.11% in 2021, reflecting an enhanced return relative to invested capital and signaling effective value creation during that period. However, this metric declined to 128.34% in 2022, which, while still positive, represents a reduction in the spread and implies a diminished capacity for value generation compared to the prior year.
MVA Margin
Carrier Global Corp., MVA margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Market value added (MVA)1 | ||||
| Net sales | ||||
| Performance Ratio | ||||
| MVA margin2 | ||||
| Benchmarks | ||||
| MVA Margin, Competitors3 | ||||
| Boeing Co. | ||||
| Caterpillar Inc. | ||||
| Eaton Corp. plc | ||||
| GE Aerospace | ||||
| Honeywell International Inc. | ||||
| Lockheed Martin Corp. | ||||
| RTX Corp. | ||||
Based on: 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 2022 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added showed an increase from 25,594 million US dollars at the end of 2020 to 31,663 million US dollars at the end of 2021. However, there was a decline in 2022, with the figure dropping to 25,514 million US dollars, slightly below the 2020 level. This indicates a peak in market value in 2021, followed by a notable decline the next year.
- Net Sales
- Net sales exhibited an upward trend from 17,456 million US dollars in 2020 to 20,613 million US dollars in 2021. In 2022, net sales slightly decreased to 20,421 million US dollars, almost maintaining the previous year's level. Overall, net sales grew significantly between 2020 and 2021 and then stabilized with a minor decline in 2022.
- MVA Margin
- The MVA margin, which represents market value added as a percentage of net sales, increased from 146.62% in 2020 to 153.61% in 2021, indicating improved value generation relative to sales. However, in 2022, this margin decreased to 124.94%, reflecting a reduction in value creation efficiency compared to prior years despite stable net sales.