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
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 »
| Item | Description | The company |
|---|---|---|
| MVA | Carrier Global Corp. market (fair) value less invested capital. | Carrier Global Corp. MVA increased from 2020 to 2021 but then decreased significantly from 2021 to 2022. |
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 | 25,514) | 31,663) | 25,594) | |
| Invested capital2 | 19,880) | 18,835) | 19,032) | |
| Performance Ratio | ||||
| MVA spread ratio3 | 128.34% | 168.11% | 134.48% | |
| Benchmarks | ||||
| MVA Spread Ratio, Competitors4 | ||||
| Boeing Co. | 250.89% | 256.38% | 257.78% | |
| Caterpillar Inc. | 194.12% | 164.79% | 176.94% | |
| Eaton Corp. plc | 149.39% | 132.30% | 124.83% | |
| GE Aerospace | 84.87% | 110.77% | 64.66% | |
| Honeywell International Inc. | 224.23% | 209.78% | 236.48% | |
| Lockheed Martin Corp. | 399.68% | 319.28% | 284.59% | |
| RTX Corp. | 54.30% | 57.80% | 31.41% | |
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 × 25,514 ÷ 19,880 = 128.34%
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. | Carrier Global Corp. MVA spread ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
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 | 25,514) | 31,663) | 25,594) | |
| Net sales | 20,421) | 20,613) | 17,456) | |
| Performance Ratio | ||||
| MVA margin2 | 124.94% | 153.61% | 146.62% | |
| Benchmarks | ||||
| MVA Margin, Competitors3 | ||||
| Boeing Co. | 191.47% | 203.39% | 211.11% | |
| Caterpillar Inc. | 188.17% | 190.18% | 245.71% | |
| Eaton Corp. plc | 221.57% | 198.58% | 191.64% | |
| GE Aerospace | 76.94% | 111.81% | 103.34% | |
| Honeywell International Inc. | 295.90% | 293.22% | 350.74% | |
| Lockheed Martin Corp. | 161.14% | 136.30% | 122.08% | |
| RTX Corp. | 91.75% | 102.95% | 64.17% | |
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 × 25,514 ÷ 20,421 = 124.94%
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. | Carrier Global Corp. MVA margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |