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
Eaton Corp. plc, 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 »
| Item | Description | The company |
|---|---|---|
| MVA | Eaton Corp. plc market (fair) value less invested capital. | Eaton Corp. plc MVA increased from 2021 to 2022 and from 2022 to 2023. |
MVA Spread Ratio
Eaton Corp. plc, 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 | 91,392) | 46,171) | 39,305) | 34,267) | 19,632) | |
| Invested capital2 | 31,576) | 30,906) | 29,709) | 27,450) | 29,469) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 289.43% | 149.39% | 132.30% | 124.83% | 66.62% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Boeing Co. | 297.77% | 250.89% | 256.38% | 257.78% | 489.80% | |
| Caterpillar Inc. | 238.67% | 194.12% | 164.79% | 176.94% | 108.09% | |
| GE Aerospace | 243.60% | 84.87% | 110.77% | 64.66% | 58.28% | |
| Honeywell International Inc. | 211.09% | 224.23% | 209.78% | 236.48% | 239.06% | |
| Lockheed Martin Corp. | 352.46% | 399.68% | 319.28% | 284.59% | 441.62% | |
| RTX Corp. | 48.99% | 54.30% | 57.80% | 31.41% | 82.79% | |
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 × 91,392 ÷ 31,576 = 289.43%
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. | Eaton Corp. plc MVA spread ratio improved from 2021 to 2022 and from 2022 to 2023. |
MVA Margin
Eaton Corp. plc, 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 | 91,392) | 46,171) | 39,305) | 34,267) | 19,632) | |
| Net sales | 23,196) | 20,752) | 19,628) | 17,858) | 21,390) | |
| Add: Increase (decrease) in deferred revenue liabilities | 118) | 86) | 165) | 23) | (14) | |
| Adjusted net sales | 23,314) | 20,838) | 19,793) | 17,881) | 21,376) | |
| Performance Ratio | ||||||
| MVA margin2 | 392.00% | 221.57% | 198.58% | 191.64% | 91.84% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Boeing Co. | 171.80% | 191.47% | 203.39% | 211.11% | 227.39% | |
| Caterpillar Inc. | 214.72% | 188.17% | 190.18% | 245.71% | 116.96% | |
| GE Aerospace | 189.55% | 76.94% | 111.81% | 103.34% | 86.63% | |
| Honeywell International Inc. | 278.88% | 295.90% | 293.22% | 350.74% | 278.15% | |
| Lockheed Martin Corp. | 143.06% | 161.14% | 136.30% | 122.08% | 189.58% | |
| RTX Corp. | 79.64% | 91.75% | 102.95% | 64.17% | 111.10% | |
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 × 91,392 ÷ 23,314 = 392.00%
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. | Eaton Corp. plc MVA margin ratio improved from 2021 to 2022 and from 2022 to 2023. |