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
Ecolab Inc., MVA calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2017-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Ecolab Inc. market (fair) value less invested capital. | Ecolab Inc. MVA increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level. |
MVA Spread Ratio
Ecolab Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | 43,191,401) | 52,430,647) | 41,469,734) | 38,963,106) | 28,759,538) | |
| Invested capital2 | 18,430,300) | 15,595,900) | 18,090,500) | 17,830,002) | 17,388,578) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 234.35% | 336.18% | 229.23% | 218.53% | 165.39% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Linde plc | 128.35% | 92.56% | — | — | — | |
| Sherwin-Williams Co. | 418.72% | 389.31% | — | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2021 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 43,191,401 ÷ 18,430,300 = 234.35%
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. | Ecolab Inc. MVA spread ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. |
MVA Margin
Ecolab Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | 43,191,401) | 52,430,647) | 41,469,734) | 38,963,106) | 28,759,538) | |
| Net sales | 12,733,100) | 11,790,200) | 14,906,300) | 14,668,200) | 13,838,300) | |
| Performance Ratio | ||||||
| MVA margin2 | 339.21% | 444.70% | 278.20% | 265.63% | 207.83% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Linde plc | 302.43% | 267.64% | — | — | — | |
| Sherwin-Williams Co. | 331.88% | 328.41% | — | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 MVA. See details »
2 2021 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × 43,191,401 ÷ 12,733,100 = 339.21%
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. | Ecolab Inc. MVA margin ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. |