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
Colgate-Palmolive Co., 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), 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 | Colgate-Palmolive Co. market (fair) value less invested capital. | Colgate-Palmolive Co. MVA decreased from 2020 to 2021 and from 2021 to 2022. |
MVA Spread Ratio
Colgate-Palmolive Co., 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 millions) | ||||||
| Market value added (MVA)1 | 54,897) | 61,626) | 62,223) | 60,724) | 53,038) | |
| Invested capital2 | 14,460) | 13,505) | 13,943) | 13,859) | 11,791) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 379.64% | 456.32% | 446.27% | 438.16% | 449.81% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Procter & Gamble Co. | 302.90% | 298.89% | 265.73% | 249.24% | — | |
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 × 54,897 ÷ 14,460 = 379.64%
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. | Colgate-Palmolive Co. MVA spread ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
MVA Margin
Colgate-Palmolive Co., 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 millions) | ||||||
| Market value added (MVA)1 | 54,897) | 61,626) | 62,223) | 60,724) | 53,038) | |
| Net sales | 17,967) | 17,421) | 16,471) | 15,693) | 15,544) | |
| Performance Ratio | ||||||
| MVA margin2 | 305.54% | 353.74% | 377.77% | 386.95% | 341.21% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Procter & Gamble Co. | 354.79% | 373.41% | 378.64% | 330.96% | — | |
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 × 54,897 ÷ 17,967 = 305.54%
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. | Colgate-Palmolive Co. MVA margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |