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
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 »
The analysis of Market Value Added (MVA) reveals a volatile but consistently positive relationship between the market valuation of the entity and its invested capital from 2019 to 2024. The MVA has remained substantially positive throughout the period, indicating that the market consistently values the company significantly higher than the capital invested in its operations.
- Market Value Trends
- The market valuation exhibited a fluctuating trajectory, reaching a peak of US$ 54,391 million in 2021 before experiencing a significant decline to a six-year low of US$ 45,691 million in 2023. A recovery trend is observed in 2024, with the valuation rising to US$ 49,953 million.
- Invested Capital Dynamics
- Invested capital showed notable instability, characterized by a sharp increase to US$ 18,092 million in 2020. Following a period of relative stabilization between 2021 and 2023, where values ranged from US$ 14,109 million to US$ 14,339 million, capital requirements increased again to US$ 16,003 million by 2024.
- MVA Performance and Volatility
- The MVA reached its maximum value in 2021 at US$ 40,052 million, driven by the simultaneous occurrence of peak market value and a reduction in invested capital. The lowest MVA was recorded in 2020 at US$ 27,997 million, primarily as a result of the spike in invested capital. By June 29, 2024, the MVA recovered to US$ 33,950 million, returning to a level nearly identical to the 2019 baseline of US$ 33,856 million.
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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 | 33,950) | 31,424) | 39,371) | 40,052) | 27,997) | 33,856) | |
| Invested capital2 | 16,003) | 14,268) | 14,109) | 14,339) | 18,092) | 12,842) | |
| Performance Ratio | |||||||
| MVA spread ratio3 | 212.15% | 220.25% | 279.04% | 279.32% | 154.75% | 263.65% | |
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Costco Wholesale Corp. | 1,145.79% | 641.08% | 601.38% | 635.70% | 488.89% | — | |
| Target Corp. | 179.94% | 210.89% | 289.75% | 247.97% | — | — | |
| Walmart Inc. | 257.71% | 195.10% | 201.42% | 174.24% | — | — | |
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 × 33,950 ÷ 16,003 = 212.15%
4 Click competitor name to see calculations.
An analysis of market value added and invested capital from 2019 to 2024 reveals a period of volatility in value creation and capital deployment, characterized by a significant dip in 2020 and a peak in 2021.
- Market Value Added (MVA)
- MVA exhibited a fluctuating trend, starting at 33,856 million USD in 2019 and declining to 27,997 million USD in 2020. A sharp recovery followed, peaking at 40,052 million USD in 2021. Following this peak, a downward trend was observed through 2023, reaching 31,424 million USD, before recovering to 33,950 million USD by June 2024.
- Invested Capital
- Invested capital saw a substantial increase in 2020, rising to 18,092 million USD from 12,842 million USD in 2019. This was followed by a period of stabilization between 2021 and 2023, with values remaining relatively constant between 14,109 million USD and 14,339 million USD. A recent upward trend is noted in 2024, with invested capital increasing to 16,003 million USD.
- MVA Spread Ratio
- The MVA spread ratio experienced a significant contraction in 2020, dropping to 154.75%, which coincides with the simultaneous decrease in MVA and the spike in invested capital. The ratio rebounded strongly in 2021 and 2022, maintaining a peak of approximately 279%. However, a consistent decline has been observed over the last two years, with the ratio falling to 220.25% in 2023 and further to 212.15% in 2024, indicating a reduction in the market's valuation of value creation relative to the capital invested.
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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 | 33,950) | 31,424) | 39,371) | 40,052) | 27,997) | 33,856) | |
| Sales | 78,844) | 76,325) | 68,636) | 51,298) | 52,893) | 60,114) | |
| Performance Ratio | |||||||
| MVA margin2 | 43.06% | 41.17% | 57.36% | 78.08% | 52.93% | 56.32% | |
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Costco Wholesale Corp. | 151.44% | 94.13% | 85.51% | 94.36% | 86.99% | — | |
| Target Corp. | 57.47% | 58.41% | 82.41% | 80.82% | — | — | |
| Walmart Inc. | 62.31% | 48.16% | 55.42% | 51.59% | — | — | |
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 × 33,950 ÷ 78,844 = 43.06%
3 Click competitor name to see calculations.
The financial data indicates a period of volatility in market value added (MVA) contrasted with a consistent recovery and growth phase in total sales between 2019 and 2024.
- Market Value Added (MVA) Trends
- MVA exhibited significant fluctuations over the analyzed period. After an initial decline from 33,856 million in 2019 to 27,997 million in 2020, the value peaked at 40,052 million in 2021. This was followed by a downward trend that reached a low of 31,424 million in 2023, before recovering to 33,950 million by June 29, 2024.
- Sales Performance and Revenue Growth
- A contraction in sales is observed between 2019 and 2021, with revenue decreasing from 60,114 million to 51,298 million. However, a strong growth trajectory commenced in 2022, with sales increasing to 68,636 million and continuing to rise through 2023 and 2024, eventually reaching 78,844 million.
- MVA Margin Interpretation
- The MVA margin demonstrated an inverse relationship with sales during the early part of the period, reaching a peak of 78.08% in 2021 when sales were at their lowest. From 2022 onward, the margin entered a period of compression, dropping to 41.17% in 2023 and ending at 43.06% in 2024. This trend suggests that while the scale of operations increased significantly through higher sales, the market's valuation of value added relative to those sales has diminished.
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