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
McDonald’s Corp., 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 | McDonald’s Corp. market (fair) value less invested capital. | McDonald’s Corp. MVA increased from 2022 to 2023 and from 2023 to 2024. |
MVA Spread Ratio
McDonald’s Corp., 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 | 222,267) | 215,527) | 193,716) | 188,148) | 168,460) | |
| Invested capital2 | 49,627) | 50,097) | 45,461) | 47,779) | 46,817) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 447.88% | 430.22% | 426.12% | 393.79% | 359.83% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Airbnb Inc. | 1,328.53% | 1,574.38% | 1,127.97% | 1,610.92% | 2,575.01% | |
| Booking Holdings Inc. | 1,316.18% | 1,200.63% | 645.29% | 637.90% | 662.28% | |
| Chipotle Mexican Grill Inc. | 1,086.51% | 1,142.84% | 775.57% | 750.94% | 835.20% | |
| Starbucks Corp. | 477.06% | 540.56% | 553.87% | 552.49% | 492.67% | |
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 × 222,267 ÷ 49,627 = 447.88%
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. | McDonald’s Corp. MVA spread ratio improved from 2022 to 2023 and from 2023 to 2024. |
MVA Margin
McDonald’s Corp., 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 | 222,267) | 215,527) | 193,716) | 188,148) | 168,460) | |
| Revenues | 25,920) | 25,494) | 23,183) | 23,223) | 19,208) | |
| Add: Increase (decrease) in deferred revenues, initial franchise fees | (12) | 32) | 20) | 36) | 41) | |
| Adjusted revenues | 25,908) | 25,526) | 23,202) | 23,259) | 19,249) | |
| Performance Ratio | ||||||
| MVA margin2 | 857.91% | 844.34% | 834.91% | 808.92% | 875.15% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Airbnb Inc. | 719.74% | 903.08% | 890.34% | 1,449.11% | 3,942.51% | |
| Booking Holdings Inc. | 719.27% | 641.48% | 515.10% | 873.43% | 1,419.18% | |
| Chipotle Mexican Grill Inc. | 654.03% | 693.54% | 483.21% | 544.85% | 685.40% | |
| Starbucks Corp. | 310.74% | 334.25% | 352.88% | 450.20% | 480.36% | |
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 revenues
= 100 × 222,267 ÷ 25,908 = 857.91%
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. | McDonald’s Corp. MVA margin ratio improved from 2022 to 2023 and from 2023 to 2024. |