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
Phillips 66, MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Phillips 66 market (fair) value less invested capital. | Phillips 66 MVA decreased from 2017 to 2018 and from 2018 to 2019. |
MVA Spread Ratio
Phillips 66, MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 5,115) | 10,748) | 12,059) | 7,931) | 11,061) | |
| Invested capital2 | 50,827) | 48,544) | 49,009) | 46,215) | 42,469) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 10.06% | 22.14% | 24.60% | 17.16% | 26.05% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Chevron Corp. | 21.23% | — | — | — | — | |
| ConocoPhillips | 38.09% | — | — | — | — | |
| Exxon Mobil Corp. | -5.98% | — | — | — | — | |
| Occidental Petroleum Corp. | -5.81% | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2019 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 5,115 ÷ 50,827 = 10.06%
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. | Phillips 66 MVA spread ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
MVA Margin
Phillips 66, MVA margin calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 5,115) | 10,748) | 12,059) | 7,931) | 11,061) | |
| Sales and other operating revenues | 107,293) | 111,461) | 102,354) | 84,279) | 98,975) | |
| Performance Ratio | ||||||
| MVA margin2 | 4.77% | 9.64% | 11.78% | 9.41% | 11.18% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Chevron Corp. | 29.71% | — | — | — | — | |
| ConocoPhillips | 67.50% | — | — | — | — | |
| Exxon Mobil Corp. | -7.10% | — | — | — | — | |
| Occidental Petroleum Corp. | -23.98% | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 MVA. See details »
2 2019 Calculation
MVA margin = 100 × MVA ÷ Sales and other operating revenues
= 100 × 5,115 ÷ 107,293 = 4.77%
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. | Phillips 66 MVA margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |