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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MVA
Corning Inc., MVA calculation
US$ in millions
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 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Corning
- The market value exhibited an upward trend from 2019 through 2021, increasing from $32,772 million to a peak of $44,277 million. However, this was followed by a decline in 2022 and 2023, reaching $37,694 million and $36,060 million respectively. This indicates a period of growth succeeded by a notable decrease in market valuation over the last two years.
- Invested capital
- Invested capital showed a generally increasing trend over the five-year period. Starting at $18,872 million in 2019, it rose to $21,233 million in 2020, then slightly declined to $19,716 million in 2021 and remained relatively stable in 2022 at $19,666 million. In 2023, it increased again to $20,411 million. This indicates ongoing capital investment with minor fluctuations but an overall growth tendency.
- Market value added (MVA)
- The MVA increased significantly from 2019 to 2021, moving from $13,900 million to $24,561 million, reflecting substantial value creation. However, from 2022 onwards, there was a sharp decline to $18,028 million in 2022 and further to $15,649 million in 2023. This suggests that while the company initially generated increasing market value above invested capital, its value creation has weakened in recent years.
- Overall Analysis
- The data indicates that while invested capital has grown moderately over the period, market valuation and value added experienced volatility. The peak values in 2021 suggest a period of strong market performance and value generation, but subsequent declines in 2022 and 2023 imply challenges or market conditions that reduced investor confidence or company valuation. The decreasing trend in MVA after 2021 is notable, as it reflects diminished market value creation relative to invested capital, possibly signaling strategic or operational pressures.
MVA Spread Ratio
Corning Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Apple Inc. | ||||||
| Arista Networks Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
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 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added shows a generally increasing trend from 2019 to 2021, rising from 13,900 million US dollars to a peak of 24,561 million US dollars in 2021. However, this is followed by a notable decline in the subsequent years, with MVA dropping to 18,028 million in 2022 and further down to 15,649 million in 2023.
- Invested Capital
- Invested capital increased from 18,872 million US dollars in 2019 to 21,233 million in 2020. It then decreased slightly to 19,716 million in 2021 and remained relatively stable around 19,666 million in 2022. In 2023, there was a moderate increase to 20,411 million US dollars, indicating steady capital investment with minor fluctuations over the period.
- MVA Spread Ratio
- The MVA spread ratio mirrors the trend in market value added, starting at 73.65% in 2019 and climbing significantly to a peak of 124.57% in 2021. This indicates an improved market performance relative to invested capital during this period. Following this peak, the ratio declined sharply to 91.67% in 2022 and further decreased to 76.67% in 2023, reflecting a reduction in market value added relative to invested capital.
- Overall Observations
- The data reflects a period of strong growth in market value added and market performance relative to capital invested until 2021, after which there is a clear reversal with declining MVA and spread ratios. Invested capital, by contrast, shows less volatility, suggesting that the changes in market value added and spread ratios are more influenced by market valuation changes rather than major shifts in capital investment.
MVA Margin
Corning 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 millions) | ||||||
| Market value added (MVA)1 | ||||||
| Net sales | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted net sales | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Apple Inc. | ||||||
| Arista Networks Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
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 net sales
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added showed an increasing trend from 2019 to 2021, rising from 13,900 million US dollars to a peak of 24,561 million US dollars in 2021. However, there was a noticeable decline in the subsequent years, with MVA decreasing to 18,028 million US dollars in 2022 and further falling to 15,649 million US dollars by the end of 2023.
- Adjusted Net Sales
- Adjusted net sales demonstrated steady growth from 11,503 million US dollars in 2019 to 14,146 million US dollars in 2022, indicating consistent revenue expansion during this period. In 2023, a decline occurred with sales dropping to 12,579 million US dollars, suggesting a slowdown or contraction in sales activity.
- MVA Margin
- The MVA margin, expressed as a percentage, increased significantly from 120.84% in 2019 to 175.81% in 2021, reflecting an improvement in value creation relative to sales. This margin then decreased to 127.44% in 2022 and slightly further to 124.4% in 2023, indicating a reduction in value added per unit of sales compared to the peak year.
- Overall Trends and Insights
- The data reveals a positive performance trend through 2019 to 2021, with increasing market value added, sales, and MVA margin, pointing to enhanced economic value generation in this period. From 2022 onward, there is a reversal, with declines in all three key indicators. This suggests challenges in maintaining prior growth momentum and value creation efficiency. The downward movement in both market value added and adjusted net sales may indicate market or operational pressures affecting financial performance. The decrease in MVA margin in recent years also implies that the company's market value growth relative to sales volume has weakened, potentially affecting investor perception and profitability.