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

Trane Technologies plc, MVA calculation

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Fair value of debt¹	4,600,000)	5,600,000)	6,300,000)	6,200,000)	4,244,000)
Operating lease liability	469,300)	443,300)	415,300)	566,400)	545,919)
Market value of common equity	41,952,745)	36,658,474)	34,741,446)	34,560,998)	25,124,995)
Noncontrolling interest	16,600)	17,200)	19,400)	44,800)	42,100)
Market (fair) value of Trane Technologies	47,038,645)	42,718,974)	41,476,146)	41,372,198)	29,957,014)
Less: Invested capital²	13,518,500)	13,354,600)	13,835,000)	15,640,000)	13,684,819)
MVA	33,520,145)	29,364,374)	27,641,146)	25,732,198)	16,272,195)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ Fair value of debt. See details »

² Invested capital. See details »

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Item	Description	The company
MVA	Trane Technologies plc market (fair) value less invested capital.	Trane Technologies plc MVA increased from 2020 to 2021 and from 2021 to 2022.

Trane Technologies plc, MVA spread ratio calculation, comparison to benchmarks

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in thousands)
Market value added (MVA)¹	33,520,145)	29,364,374)	27,641,146)	25,732,198)	16,272,195)
Invested capital²	13,518,500)	13,354,600)	13,835,000)	15,640,000)	13,684,819)
Performance Ratio
MVA spread ratio³	247.96%	219.88%	199.79%	164.53%	118.91%
Benchmarks
MVA Spread Ratio, Competitors⁴
Boeing Co.	250.89%	256.38%	257.78%	—	—
Caterpillar Inc.	194.33%	165.08%	177.78%	—	—
Eaton Corp. plc	149.39%	132.30%	124.83%	—	—
GE Aerospace	84.87%	110.77%	64.66%	—	—
Honeywell International Inc.	224.23%	209.78%	236.48%	—	—
Lockheed Martin Corp.	399.68%	319.28%	284.59%	—	—
RTX Corp.	54.30%	57.80%	31.41%	—	—

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ MVA. See details »

² Invested capital. See details »

³ 2022 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 33,520,145 ÷ 13,518,500 = 247.96%

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.	Trane Technologies plc MVA spread ratio improved from 2020 to 2021 and from 2021 to 2022.

Trane Technologies plc, MVA margin calculation, comparison to benchmarks

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in thousands)
Market value added (MVA)¹	33,520,145)	29,364,374)	27,641,146)	25,732,198)	16,272,195)

Net revenues	15,991,700)	14,136,400)	12,454,700)	16,598,900)	15,668,200)
Add: Increase (decrease) in deferred revenue	6,000)	7,300)	1,600)	11,900)	(800)
Adjusted net revenues	15,997,700)	14,143,700)	12,456,300)	16,610,800)	15,667,400)
Performance Ratio
MVA margin²	209.53%	207.61%	221.90%	154.91%	103.86%
Benchmarks
MVA Margin, Competitors³
Boeing Co.	191.47%	203.39%	211.11%	—	—
Caterpillar Inc.	188.24%	190.31%	246.13%	—	—
Eaton Corp. plc	221.57%	198.58%	191.64%	—	—
GE Aerospace	76.94%	111.81%	103.34%	—	—
Honeywell International Inc.	295.90%	293.22%	350.74%	—	—
Lockheed Martin Corp.	161.14%	136.30%	122.08%	—	—
RTX Corp.	91.75%	102.95%	64.17%	—	—

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ MVA. See details »

² 2022 Calculation
MVA margin = 100 × MVA ÷ Adjusted net revenues
= 100 × 33,520,145 ÷ 15,997,700 = 209.53%

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.	Trane Technologies plc MVA margin ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022.

Trane Technologies plc (NYSE:TT)

Market Value Added (MVA)

MVA

MVA Spread Ratio

MVA Margin