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
Twitter Inc., MVA calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2017-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Twitter Inc. market (fair) value less invested capital. | Twitter Inc. MVA increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
MVA Spread Ratio
Twitter Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | 23,128,800) | 51,403,347) | 23,739,860) | 17,742,607) | 19,627,666) | |
| Invested capital2 | 7,449,784) | 5,970,409) | 5,287,225) | 5,185,025) | 4,627,898) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 310.46% | 860.97% | 449.00% | 342.19% | 424.12% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Alphabet Inc. | 1,159.04% | 970.03% | 804.65% | — | — | |
| Comcast Corp. | 50.36% | 64.16% | 48.88% | — | — | |
| Meta Platforms Inc. | 579.06% | 791.20% | 773.13% | — | — | |
| Netflix Inc. | 453.21% | 772.09% | — | — | — | |
| Walt Disney Co. | 103.57% | 101.22% | 96.61% | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2021 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 23,128,800 ÷ 7,449,784 = 310.46%
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. | Twitter Inc. MVA spread ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
MVA Margin
Twitter Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | 23,128,800) | 51,403,347) | 23,739,860) | 17,742,607) | 19,627,666) | |
| Revenue | 5,077,482) | 3,716,349) | 3,459,329) | 3,042,359) | 2,443,299) | |
| Add: Increase (decrease) in deferred revenue | 17,223) | (6,809) | 30,051) | 11,125) | (5,835) | |
| Adjusted revenue | 5,094,705) | 3,709,540) | 3,489,380) | 3,053,484) | 2,437,464) | |
| Performance Ratio | ||||||
| MVA margin2 | 453.98% | 1,385.71% | 680.35% | 581.06% | 805.25% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Alphabet Inc. | 664.82% | 649.56% | 499.56% | — | — | |
| Comcast Corp. | 99.16% | 138.43% | 97.01% | — | — | |
| Meta Platforms Inc. | 454.84% | 744.17% | 715.58% | — | — | |
| Netflix Inc. | 529.22% | 912.25% | — | — | — | |
| Walt Disney Co. | 263.91% | 272.21% | 231.16% | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 MVA. See details »
2 2021 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenue
= 100 × 23,128,800 ÷ 5,094,705 = 453.98%
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. | Twitter Inc. MVA margin ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |