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
Devon Energy 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), 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 | Devon Energy Corp. market (fair) value less invested capital. | Devon Energy Corp. MVA increased from 2020 to 2021 but then slightly decreased from 2021 to 2022. |
MVA Spread Ratio
Devon Energy Corp., 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 | 24,349) | 27,099) | 12,514) | 3,490) | 4,178) | |
| Invested capital2 | 19,717) | 16,727) | 7,866) | 10,964) | 15,392) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 123.49% | 162.01% | 159.10% | 31.84% | 27.15% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Chevron Corp. | 57.71% | 54.49% | 25.83% | 21.23% | — | |
| ConocoPhillips | 93.55% | 86.17% | 63.43% | 38.09% | — | |
| Exxon Mobil Corp. | 67.23% | 42.25% | 18.54% | -5.98% | — | |
| Marathon Petroleum Corp. | 23.50% | 16.35% | 14.91% | -10.38% | — | |
| Occidental Petroleum Corp. | 44.52% | 34.32% | 9.79% | -5.81% | — | |
| Valero Energy Corp. | 27.46% | 19.85% | 21.44% | 4.90% | — | |
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 × 24,349 ÷ 19,717 = 123.49%
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. | Devon Energy Corp. MVA spread ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
MVA Margin
Devon Energy Corp., 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 | 24,349) | 27,099) | 12,514) | 3,490) | 4,178) | |
| Revenues | 19,169) | 12,206) | 4,828) | 6,220) | 10,734) | |
| Performance Ratio | ||||||
| MVA margin2 | 127.02% | 222.02% | 259.21% | 56.12% | 38.93% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Chevron Corp. | 51.99% | 67.80% | 53.96% | 29.71% | — | |
| ConocoPhillips | 90.01% | 143.57% | 171.77% | 67.50% | — | |
| Exxon Mobil Corp. | 50.09% | 41.64% | 28.44% | -7.10% | — | |
| Marathon Petroleum Corp. | 9.21% | 8.67% | 15.00% | -6.87% | — | |
| Occidental Petroleum Corp. | 68.42% | 76.78% | 34.78% | -23.98% | — | |
| Valero Energy Corp. | 7.75% | 7.75% | 13.53% | 1.84% | — | |
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 ÷ Revenues
= 100 × 24,349 ÷ 19,169 = 127.02%
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. | Devon Energy Corp. MVA margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |