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
Hershey Co., MVA calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2018-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Hershey Co. market (fair) value less invested capital. | Hershey Co. MVA increased from 2020 to 2021 and from 2021 to 2022. |
MVA Spread Ratio
Hershey Co., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | 44,973,798) | 38,614,099) | 29,040,753) | 31,501,445) | 21,104,259) | |
| Invested capital2 | 8,759,552) | 8,529,610) | 7,520,057) | 6,702,394) | 6,545,593) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 513.43% | 452.71% | 386.18% | 470.00% | 322.42% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Altria Group Inc. | 268.30% | 269.92% | 179.16% | 157.62% | — | |
| Coca-Cola Co. | 267.55% | 289.24% | 244.21% | 297.74% | — | |
| PepsiCo Inc. | 296.11% | 297.67% | 237.73% | 302.36% | — | |
| Philip Morris International Inc. | 327.03% | 582.70% | 437.24% | 450.40% | — | |
Based on: 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), 10-K (reporting date: 2018-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2022 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 44,973,798 ÷ 8,759,552 = 513.43%
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. | Hershey Co. MVA spread ratio improved from 2020 to 2021 and from 2021 to 2022. |
MVA Margin
Hershey Co., MVA margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | 44,973,798) | 38,614,099) | 29,040,753) | 31,501,445) | 21,104,259) | |
| Net sales | 10,419,294) | 8,971,337) | 8,149,719) | 7,986,252) | 7,791,069) | |
| Performance Ratio | ||||||
| MVA margin2 | 431.64% | 430.42% | 356.34% | 394.45% | 270.88% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Altria Group Inc. | 307.92% | 347.85% | 284.28% | 267.55% | — | |
| Coca-Cola Co. | 497.46% | 600.94% | 559.78% | 589.26% | — | |
| PepsiCo Inc. | 238.05% | 261.55% | 236.69% | 267.35% | — | |
| Philip Morris International Inc. | 488.72% | 543.05% | 486.98% | 472.75% | — | |
Based on: 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), 10-K (reporting date: 2018-12-31).
1 MVA. See details »
2 2022 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × 44,973,798 ÷ 10,419,294 = 431.64%
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. | Hershey Co. MVA margin ratio improved from 2020 to 2021 and from 2021 to 2022. |