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
International Business Machines Corp., MVA calculation
US$ in millions
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 »
| Item | Description | The company |
|---|---|---|
| MVA | International Business Machines Corp. market (fair) value less invested capital. | International Business Machines Corp. MVA increased from 2021 to 2022 and from 2022 to 2023. |
MVA Spread Ratio
International Business Machines Corp., MVA spread ratio calculation, comparison to benchmarks
| 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 | 113,645) | 62,690) | 60,505) | 50,923) | 63,942) | |
| Invested capital2 | 112,927) | 104,131) | 110,083) | 130,176) | 133,824) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 100.64% | 60.20% | 54.96% | 39.12% | 47.78% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Accenture PLC | 487.90% | 442.58% | 739.74% | 550.21% | 505.40% | |
| Adobe Inc. | 991.60% | 658.07% | 1,033.13% | 1,082.99% | 884.94% | |
| Cadence Design Systems Inc. | 1,934.83% | 1,302.22% | 1,110.87% | 1,232.57% | 792.57% | |
| CrowdStrike Holdings Inc. | 608.44% | 1,273.85% | 1,618.34% | 1,449.48% | — | |
| Intuit Inc. | 573.60% | 406.80% | 1,175.12% | 976.09% | 1,553.30% | |
| Microsoft Corp. | 892.49% | 956.02% | 1,383.21% | 1,315.93% | 962.41% | |
| Oracle Corp. | 324.04% | 224.95% | 260.27% | 180.84% | 220.64% | |
| Palantir Technologies Inc. | 3,878.69% | 488.89% | 829.78% | 1,919.83% | — | |
| Palo Alto Networks Inc. | 731.80% | 559.30% | 573.51% | 267.94% | 424.83% | |
| Salesforce Inc. | 126.24% | 150.31% | 270.75% | 226.93% | 326.41% | |
| ServiceNow Inc. | 1,781.94% | 1,276.80% | 1,798.18% | 2,575.52% | 2,192.76% | |
| Synopsys Inc. | 973.25% | 565.55% | 707.79% | 468.10% | 272.11% | |
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 × 113,645 ÷ 112,927 = 100.64%
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. | International Business Machines Corp. MVA spread ratio improved from 2021 to 2022 and from 2022 to 2023. |
MVA Margin
International Business Machines Corp., MVA margin calculation, comparison to benchmarks
| 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 | 113,645) | 62,690) | 60,505) | 50,923) | 63,942) | |
| Revenue | 61,860) | 60,530) | 57,350) | 73,620) | 77,147) | |
| Add: Increase (decrease) in deferred income | 1,453) | (564) | 357) | 1,257) | 1,267) | |
| Adjusted revenue | 63,313) | 59,966) | 57,707) | 74,877) | 78,414) | |
| Performance Ratio | ||||||
| MVA margin2 | 179.50% | 104.54% | 104.85% | 68.01% | 81.54% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Accenture PLC | 251.01% | 213.17% | 379.26% | 279.96% | 233.58% | |
| Adobe Inc. | 1,241.42% | 766.46% | 1,287.44% | 1,554.19% | 1,330.31% | |
| Cadence Design Systems Inc. | 1,927.61% | 1,299.21% | 1,128.47% | 1,241.37% | 769.46% | |
| CrowdStrike Holdings Inc. | 816.60% | 1,995.27% | 3,362.60% | 1,272.66% | — | |
| Intuit Inc. | 939.31% | 782.89% | 1,489.94% | 1,098.60% | 1,034.92% | |
| Microsoft Corp. | 1,016.40% | 916.17% | 1,148.11% | 976.86% | 711.95% | |
| Oracle Corp. | 626.94% | 412.88% | 514.72% | 411.93% | 401.82% | |
| Palantir Technologies Inc. | 2,081.46% | 820.15% | 1,366.76% | 3,910.89% | — | |
| Palo Alto Networks Inc. | 726.58% | 651.61% | 771.73% | 434.98% | 469.70% | |
| Salesforce Inc. | 321.51% | 417.33% | 620.94% | 558.53% | 642.57% | |
| ServiceNow Inc. | 1,433.56% | 1,026.06% | 1,555.49% | 2,101.04% | 1,606.91% | |
| Synopsys Inc. | 1,373.41% | 796.87% | 1,126.17% | 803.94% | 470.26% | |
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 revenue
= 100 × 113,645 ÷ 63,313 = 179.50%
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. | International Business Machines Corp. MVA margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |