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
Johnson Controls International plc, MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Johnson Controls International plc market (fair) value less invested capital. | Johnson Controls International plc MVA decreased from 2021 to 2022 and from 2022 to 2023. |
MVA Spread Ratio
Johnson Controls International plc, MVA spread ratio calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 17,798) | 26,471) | 36,905) | 14,477) | 11,061) | 8,940) | |
| Invested capital2 | 29,464) | 29,496) | 29,338) | 29,283) | 31,274) | 35,173) | |
| Performance Ratio | |||||||
| MVA spread ratio3 | 60.41% | 89.74% | 125.79% | 49.44% | 35.37% | 25.42% | |
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Boeing Co. | 297.77% | 250.89% | 256.38% | 257.78% | 489.80% | — | |
| Caterpillar Inc. | 238.67% | 194.12% | 164.79% | 176.94% | 108.09% | — | |
| Eaton Corp. plc | 289.43% | 149.39% | 132.30% | 124.83% | 66.62% | — | |
| GE Aerospace | 243.60% | 84.87% | 110.77% | 64.66% | 58.28% | — | |
| Honeywell International Inc. | 211.09% | 224.23% | 209.78% | 236.48% | 239.06% | — | |
| Lockheed Martin Corp. | 352.46% | 399.68% | 319.28% | 284.59% | 441.62% | — | |
| RTX Corp. | 48.99% | 54.30% | 57.80% | 31.41% | 82.79% | — | |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30).
1 MVA. See details »
2 Invested capital. See details »
3 2023 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 17,798 ÷ 29,464 = 60.41%
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. | Johnson Controls International plc MVA spread ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
MVA Margin
Johnson Controls International plc, MVA margin calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 17,798) | 26,471) | 36,905) | 14,477) | 11,061) | 8,940) | |
| Net sales | 26,793) | 25,299) | 23,668) | 22,317) | 23,968) | 31,400) | |
| Add: Increase (decrease) in deferred revenue | 192) | 131) | 202) | 28) | 81) | 47) | |
| Adjusted net sales | 26,985) | 25,430) | 23,870) | 22,345) | 24,049) | 31,447) | |
| Performance Ratio | |||||||
| MVA margin2 | 65.96% | 104.09% | 154.61% | 64.79% | 45.99% | 28.43% | |
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Boeing Co. | 171.80% | 191.47% | 203.39% | 211.11% | 227.39% | — | |
| Caterpillar Inc. | 214.72% | 188.17% | 190.18% | 245.71% | 116.96% | — | |
| Eaton Corp. plc | 392.00% | 221.57% | 198.58% | 191.64% | 91.84% | — | |
| GE Aerospace | 189.55% | 76.94% | 111.81% | 103.34% | 86.63% | — | |
| Honeywell International Inc. | 278.88% | 295.90% | 293.22% | 350.74% | 278.15% | — | |
| Lockheed Martin Corp. | 143.06% | 161.14% | 136.30% | 122.08% | 189.58% | — | |
| RTX Corp. | 79.64% | 91.75% | 102.95% | 64.17% | 111.10% | — | |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30).
1 MVA. See details »
2 2023 Calculation
MVA margin = 100 × MVA ÷ Adjusted net sales
= 100 × 17,798 ÷ 26,985 = 65.96%
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. | Johnson Controls International plc MVA margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |