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
General Dynamics Corp., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | General Dynamics Corp. market (fair) value less invested capital. | General Dynamics Corp. MVA decreased from 2017 to 2018 but then slightly increased from 2018 to 2019. |
MVA Spread Ratio
General Dynamics Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 36,177) | 33,875) | 47,625) | 40,794) | 27,306) | |
| Invested capital2 | 31,608) | 29,939) | 19,772) | 19,539) | 18,175) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 114.46% | 113.15% | 240.87% | 208.78% | 150.24% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Boeing Co. | 489.80% | — | — | — | — | |
| Caterpillar Inc. | 108.09% | — | — | — | — | |
| Eaton Corp. plc | 66.62% | — | — | — | — | |
| GE Aerospace | 58.28% | — | — | — | — | |
| Honeywell International Inc. | 239.06% | — | — | — | — | |
| Lockheed Martin Corp. | 441.62% | — | — | — | — | |
| RTX Corp. | 82.79% | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2019 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 36,177 ÷ 31,608 = 114.46%
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. | General Dynamics Corp. MVA spread ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
MVA Margin
General Dynamics Corp., MVA margin calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 36,177) | 33,875) | 47,625) | 40,794) | 27,306) | |
| Revenue | 39,350) | 36,193) | 30,973) | 31,353) | 31,469) | |
| Performance Ratio | ||||||
| MVA margin2 | 91.94% | 93.60% | 153.76% | 130.11% | 86.77% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Boeing Co. | 227.39% | — | — | — | — | |
| Caterpillar Inc. | 116.96% | — | — | — | — | |
| Eaton Corp. plc | 91.84% | — | — | — | — | |
| GE Aerospace | 86.63% | — | — | — | — | |
| Honeywell International Inc. | 278.15% | — | — | — | — | |
| Lockheed Martin Corp. | 189.58% | — | — | — | — | |
| RTX Corp. | 111.10% | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 MVA. See details »
2 2019 Calculation
MVA margin = 100 × MVA ÷ Revenue
= 100 × 36,177 ÷ 39,350 = 91.94%
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. | General Dynamics Corp. MVA margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |