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
MVA Spread Ratio
MVA Margin

Freeport-McMoRan Inc., MVA calculation

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Fair value of long-term debt, including current portion¹	9,364)	10,097)	10,630)	10,994)	10,239)
Operating lease liability	431)	332)	319)	228)	248)
Market value of common equity	55,698)	60,533)	63,530)	47,984)	17,760)
Noncontrolling interests	10,617)	9,316)	9,039)	8,494)	8,150)
Less: Investment securities	33)	32)	79)	36)	31)
Market (fair) value of FCX	76,077)	80,246)	83,439)	67,664)	36,366)
Less: Invested capital²	35,126)	36,035)	35,043)	32,173)	28,120)
MVA	40,951)	44,211)	48,396)	35,491)	8,246)

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 »

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Item	Description	The company
MVA	Freeport-McMoRan Inc. market (fair) value less invested capital.	Freeport-McMoRan Inc. MVA decreased from 2021 to 2022 and from 2022 to 2023.

Freeport-McMoRan Inc., MVA spread ratio calculation

	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	40,951)	44,211)	48,396)	35,491)	8,246)
Invested capital²	35,126)	36,035)	35,043)	32,173)	28,120)
Performance Ratio
MVA spread ratio³	116.58%	122.69%	138.11%	110.31%	29.32%

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 × 40,951 ÷ 35,126 = 116.58%

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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.	Freeport-McMoRan Inc. MVA spread ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Freeport-McMoRan Inc., MVA margin calculation

	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	40,951)	44,211)	48,396)	35,491)	8,246)

Revenues	22,855)	22,780)	22,845)	14,198)	14,402)
Add: Increase (decrease) in deferred revenue	85)	(115)	126)	53)	(23)
Adjusted revenues	22,940)	22,665)	22,971)	14,251)	14,379)
Performance Ratio
MVA margin²	178.51%	195.06%	210.68%	249.04%	57.35%

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 revenues
= 100 × 40,951 ÷ 22,940 = 178.51%

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Performance ratio	Description	The company
MVA margin	The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value.	Freeport-McMoRan Inc. MVA margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Freeport-McMoRan Inc. (NYSE:FCX)

Market Value Added (MVA)

MVA

MVA Spread Ratio

MVA Margin