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
GE Aerospace, MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | GE Aerospace market (fair) value less invested capital. | GE Aerospace MVA increased from 2022 to 2023 and from 2023 to 2024. |
MVA Spread Ratio
GE Aerospace, MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 201,523) | 122,270) | 56,731) | 79,784) | 75,991) | |
| Invested capital2 | 37,678) | 50,194) | 66,842) | 72,026) | 117,528) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 534.86% | 243.60% | 84.87% | 110.77% | 64.66% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Boeing Co. | 243.89% | 297.77% | 250.89% | 256.38% | 257.78% | |
| Caterpillar Inc. | 252.29% | 247.08% | 194.33% | 165.08% | 177.78% | |
| Eaton Corp. plc | — | 289.43% | 149.39% | 132.30% | 124.83% | |
| Honeywell International Inc. | 169.63% | 211.09% | 224.23% | 209.78% | 236.48% | |
| Lockheed Martin Corp. | 341.89% | 352.46% | 399.68% | 319.28% | 284.59% | |
| RTX Corp. | 92.50% | 48.99% | 54.30% | 57.80% | 31.41% | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 201,523 ÷ 37,678 = 534.86%
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. | GE Aerospace MVA spread ratio improved from 2022 to 2023 and from 2023 to 2024. |
MVA Margin
GE Aerospace, MVA margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 201,523) | 122,270) | 56,731) | 79,784) | 75,991) | |
| Sales of equipment and services | 35,121) | 64,565) | 73,602) | 71,090) | 73,022) | |
| Add: Increase (decrease) in deferred income | (23) | (61) | 134) | 266) | 516) | |
| Adjusted sales of equipment and services | 35,098) | 64,504) | 73,736) | 71,356) | 73,538) | |
| Performance Ratio | ||||||
| MVA margin2 | 574.17% | 189.55% | 76.94% | 111.81% | 103.34% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Boeing Co. | 184.25% | 171.80% | 191.47% | 203.39% | 211.11% | |
| Caterpillar Inc. | 236.49% | 214.78% | 188.24% | 190.31% | 246.13% | |
| Eaton Corp. plc | — | 392.00% | 221.57% | 198.58% | 191.64% | |
| Honeywell International Inc. | 265.73% | 278.88% | 295.90% | 293.22% | 350.74% | |
| Lockheed Martin Corp. | 138.52% | 143.06% | 161.14% | 136.30% | 122.08% | |
| RTX Corp. | 127.55% | 79.64% | 91.75% | 102.95% | 64.17% | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Adjusted sales of equipment and services
= 100 × 201,523 ÷ 35,098 = 574.17%
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. | GE Aerospace MVA margin ratio improved from 2022 to 2023 and from 2023 to 2024. |