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
Raytheon Co., 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 | Raytheon Co. market (fair) value less invested capital. | Raytheon Co. MVA decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level. |
MVA Spread Ratio
Raytheon Co., 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 | 43,575) | 31,603) | 44,500) | 28,280) | 21,918) | |
| Invested capital2 | 26,688) | 26,081) | 23,548) | 23,509) | 22,413) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 163.27% | 121.17% | 188.97% | 120.29% | 97.79% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Boeing Co. | 489.80% | — | — | — | — | |
| Caterpillar Inc. | 108.09% | — | — | — | — | |
| Eaton Corp. plc | 66.62% | — | — | — | — | |
| GE Aerospace | 58.28% | — | — | — | — | |
| Honeywell International Inc. | 239.06% | — | — | — | — | |
| Lockheed Martin Corp. | — | — | — | — | — | |
| RTX Corp. | 82.79% | — | — | — | — | |
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 × 43,575 ÷ 26,688 = 163.27%
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. | Raytheon Co. MVA spread ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
MVA Margin
Raytheon Co., 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 | 43,575) | 31,603) | 44,500) | 28,280) | 21,918) | |
| Net sales | 29,176) | 27,058) | 25,348) | 24,069) | 23,247) | |
| Performance Ratio | ||||||
| MVA margin2 | 149.35% | 116.80% | 175.55% | 117.50% | 94.28% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Boeing Co. | 227.39% | — | — | — | — | |
| Caterpillar Inc. | 116.96% | — | — | — | — | |
| Eaton Corp. plc | 91.84% | — | — | — | — | |
| GE Aerospace | 86.63% | — | — | — | — | |
| Honeywell International Inc. | 278.15% | — | — | — | — | |
| Lockheed Martin Corp. | — | — | — | — | — | |
| RTX Corp. | 111.10% | — | — | — | — | |
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 ÷ Net sales
= 100 × 43,575 ÷ 29,176 = 149.35%
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. | Raytheon Co. MVA margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |