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.
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- Common-Size Income Statement
- Analysis of Solvency Ratios
- Enterprise Value (EV)
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
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MVA
Sysco Corp., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Sysco
-
The market value experienced fluctuations over the observed periods. Starting at 46,698 million USD in mid-2019, it dipped slightly to 46,089 million USD in mid-2020. This was followed by a notable rise in mid-2021 to 54,391 million USD, then a minor decline to 53,480 million USD in mid-2022. Subsequently, the value dropped more considerably to 45,691 million USD in mid-2023 but showed a recovery to 49,953 million USD by mid-2024.
- Invested capital
-
Invested capital presented some variability with an overall upward trend. It rose significantly from 12,842 million USD in mid-2019 to 18,092 million USD in mid-2020, then declined to 14,339 million USD in mid-2021. The following two years showed relative stability, with values around 14,109 million USD in mid-2022 and 14,268 million USD in mid-2023. By mid-2024, invested capital increased again to 16,003 million USD.
- Market value added (MVA)
-
MVA, representing the value generated above the invested capital, mirrored the fluctuations seen in market value. It decreased from 33,856 million USD in mid-2019 to 27,997 million USD in mid-2020, increased substantially to 40,052 million USD in mid-2021, and slightly declined to 39,371 million USD in mid-2022. A more significant drop occurred in mid-2023 to 31,424 million USD, followed by a recovery to 33,950 million USD in the latest period.
- Summary of trends and insights
-
The data indicate that the company’s market valuation experienced periods of volatility over the six-year span, with peaks notably in 2021 and dips primarily in 2020 and 2023. Invested capital showed more moderate fluctuations with a general increase reflecting possible expansion or reinvestment activities especially notable between 2019 and 2020 and again in 2024. The MVA tracked closely with market value movements, suggesting that the company's ability to generate value beyond its invested capital has been sensitive to market conditions or operational performance changes during this timeframe. The recovery in market value and MVA observed in 2024 may indicate improving business prospects or favorable investor sentiment after the earlier declines.
MVA Spread Ratio
Sysco Corp., MVA spread ratio calculation, comparison to benchmarks
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| MVA spread ratio3 | |||||||
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Costco Wholesale Corp. | |||||||
| Target Corp. | |||||||
| Walmart Inc. | |||||||
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added shows significant fluctuations over the analyzed periods. Initially, it decreased from 33,856 million USD in mid-2019 to 27,997 million USD in mid-2020, indicating a noticeable decline. This was followed by a strong recovery to 40,052 million USD in mid-2021, reaching the highest point in the dataset. Subsequently, a decline occurred, with MVA decreasing to 39,371 million USD and further down to 31,424 million USD by mid-2023. The latest data shows a moderate recovery to 33,950 million USD by mid-2024.
- Invested Capital
- Invested Capital exhibits a generally increasing trend with some fluctuations. Starting at 12,842 million USD in mid-2019, it rose substantially to 18,092 million USD in mid-2020. This was followed by a decrease to 14,339 million USD in mid-2021 and relative stability around 14,000 million USD for the next two years. By mid-2024, invested capital increased again to 16,003 million USD, suggesting renewed investment or capital allocation.
- MVA Spread Ratio
- The MVA spread ratio, expressed as a percentage, closely mirrors the trends seen in the Market Value Added but reflects value creation relative to invested capital. It declined sharply from 263.65% in mid-2019 to 154.75% in mid-2020. A strong rebound to 279.32% occurred in mid-2021, maintaining elevated levels around 279.04% in mid-2022. Afterwards, the ratio declined to 220.25% by mid-2023 and further to 212.15% by mid-2024, indicating a reduction in value spread despite increased invested capital.
- Summary of Trends and Insights
- Over the period under review, the financial metrics indicate periods of volatility and recovery. The initial decline in market value added and spread ratios in 2020 likely reflect external factors impacting performance. The recovery in 2021 suggests effective value creation or market repositioning, though subsequent years indicate challenges maintaining peak value levels. Invested capital shows a pattern of increased deployment around 2020 and again in 2024, suggesting strategic capital investment decisions. Despite increased invested capital in recent years, the declining MVA spread ratio points to diminishing incremental returns, highlighting potential efficiency or profitability concerns that may warrant further investigation.
MVA Margin
Sysco Corp., MVA margin calculation, comparison to benchmarks
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Sales | |||||||
| Performance Ratio | |||||||
| MVA margin2 | |||||||
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Costco Wholesale Corp. | |||||||
| Target Corp. | |||||||
| Walmart Inc. | |||||||
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Sales
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The MVA demonstrates a fluctuating trend over the years. Starting at 33,856 million US dollars in June 2019, it declined to a low of 27,997 million in June 2020. Subsequently, it rose significantly to peak at 40,052 million in July 2021, before decreasing again to 31,424 million in July 2023. In the latest period, June 2024, a modest recovery is noted with the MVA increasing to 33,950 million. Overall, the MVA exhibits volatility without a clear upward or downward trajectory across the examined period.
- Sales
- Sales figures reveal a general upward trend with some variability. Beginning at 60,114 million US dollars in June 2019, sales decreased to 52,893 million by June 2020 and further to 51,298 million in July 2021. Following this, a substantial increase occurred, reaching 68,636 million in July 2022, continuing upward to 76,325 million in July 2023, and further to 78,844 million in June 2024. This pattern indicates a strong recovery and growth phase after a dip during the 2020–2021 intervals.
- MVA Margin (%)
- The MVA margin shows variability with a generally declining tendency. It started at 56.32% in June 2019, decreased slightly to 52.93% in 2020, surged to 78.08% in 2021, and then dropped to 57.36% in 2022. Following this, a marked decline is observed in 2023 reaching 41.17%, with a slight increase to 43.06% in 2024. This fluctuation suggests varying efficiency in converting sales into market value added, with recent years showing reduced margins compared to earlier periods.