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
MVA Spread Ratio
MVA Margin

Parker-Hannifin Corp., MVA calculation

US$ in thousands

	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017
Fair value of notes payable and long-term debt¹	11,131,437)	7,527,273)	9,297,901)	7,599,427)	5,086,851)	6,179,729)
Operating lease liability	136,360)	134,097)	139,773)	125,951)	201,970)	213,295)
Market value of common equity	36,646,215)	39,183,577)	26,969,656)	20,297,657)	22,703,715)	20,941,339)
Serial preferred stock, $.50 par value; none issued	—)	—)	—)	—)	—)	—)
Noncontrolling interests	11,909)	15,363)	14,546)	6,183)	5,627)	5,697)
Less: Marketable securities and other investments	27,862)	39,116)	70,805)	150,931)	32,995)	39,318)
Market (fair) value of Parker	47,898,059)	46,821,194)	36,351,071)	27,878,287)	27,965,167)	27,300,742)
Less: Invested capital²	21,994,132)	16,926,500)	17,529,292)	15,269,283)	13,016,451)	13,507,821)
MVA	25,903,927)	29,894,694)	18,821,779)	12,609,004)	14,948,717)	13,792,921)

Based on: 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30).

¹ Fair value of debt. See details »

² Invested capital. See details »

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Item	Description	The company
MVA	Parker-Hannifin Corp. market (fair) value less invested capital.	Parker-Hannifin Corp. MVA increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

Parker-Hannifin Corp., MVA spread ratio calculation, comparison to benchmarks

	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017
Selected Financial Data (US$ in thousands)
Market value added (MVA)¹	25,903,927)	29,894,694)	18,821,779)	12,609,004)	14,948,717)	13,792,921)
Invested capital²	21,994,132)	16,926,500)	17,529,292)	15,269,283)	13,016,451)	13,507,821)
Performance Ratio
MVA spread ratio³	117.78%	176.61%	107.37%	82.58%	114.84%	102.11%
Benchmarks
MVA Spread Ratio, Competitors⁴
Boeing Co.	250.89%	256.38%	257.78%	489.80%	—	—
Caterpillar Inc.	194.12%	164.79%	176.94%	108.09%	—	—
Eaton Corp. plc	149.39%	132.30%	124.83%	66.62%	—	—
GE Aerospace	84.87%	110.77%	64.66%	58.28%	—	—
Honeywell International Inc.	224.23%	209.78%	236.48%	239.06%	—	—
Lockheed Martin Corp.	399.68%	319.28%	284.59%	—	—	—
RTX Corp.	54.30%	57.80%	31.41%	82.79%	—	—

Based on: 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30).

¹ MVA. See details »

² Invested capital. See details »

³ 2022 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 25,903,927 ÷ 21,994,132 = 117.78%

⁴ Click competitor name to see calculations.

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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.	Parker-Hannifin Corp. MVA spread ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Parker-Hannifin Corp., MVA margin calculation, comparison to benchmarks

	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017
Selected Financial Data (US$ in thousands)
Market value added (MVA)¹	25,903,927)	29,894,694)	18,821,779)	12,609,004)	14,948,717)	13,792,921)
Net sales	15,861,608)	14,347,640)	13,695,520)	14,320,324)	14,302,392)	12,029,312)
Performance Ratio
MVA margin²	163.31%	208.36%	137.43%	88.05%	104.52%	114.66%
Benchmarks
MVA Margin, Competitors³
Boeing Co.	191.47%	203.39%	211.11%	227.39%	—	—
Caterpillar Inc.	188.17%	190.18%	245.71%	116.96%	—	—
Eaton Corp. plc	221.57%	198.58%	191.64%	91.84%	—	—
GE Aerospace	76.94%	111.81%	103.34%	86.63%	—	—
Honeywell International Inc.	295.90%	293.22%	350.74%	278.15%	—	—
Lockheed Martin Corp.	161.14%	136.30%	122.08%	—	—	—
RTX Corp.	91.75%	102.95%	64.17%	111.10%	—	—

Based on: 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30).

¹ MVA. See details »

² 2022 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × 25,903,927 ÷ 15,861,608 = 163.31%

³ Click competitor name to see calculations.

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Performance ratio	Description	The company
MVA margin	The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value.	Parker-Hannifin Corp. MVA margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Parker-Hannifin Corp. (NYSE:PH)

Market Value Added (MVA)

MVA

MVA Spread Ratio

MVA Margin