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
United States Steel Corp., MVA calculation
US$ in millions
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 »
| Item | Description | The company |
|---|---|---|
| MVA | United States Steel Corp. market (fair) value less invested capital. | United States Steel Corp. MVA decreased from 2020 to 2021 and from 2021 to 2022. |
MVA Spread Ratio
United States Steel Corp., 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 millions) | ||||||
| Market value added (MVA)1 | (1,576) | (1,312) | 1,428) | (2,466) | (338) | |
| Invested capital2 | 12,723) | 12,346) | 8,622) | 7,841) | 6,762) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | -12.38% | -10.63% | 16.56% | -31.45% | -4.99% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Freeport-McMoRan Inc. | 122.69% | 138.11% | 110.31% | — | — | |
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 × -1,576 ÷ 12,723 = -12.38%
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. | United States Steel Corp. MVA spread ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
MVA Margin
United States Steel Corp., 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 millions) | ||||||
| Market value added (MVA)1 | (1,576) | (1,312) | 1,428) | (2,466) | (338) | |
| Net sales | 21,065) | 20,275) | 9,741) | 12,937) | 14,178) | |
| Performance Ratio | ||||||
| MVA margin2 | -7.48% | -6.47% | 14.66% | -19.06% | -2.38% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Freeport-McMoRan Inc. | 195.06% | 210.68% | 249.04% | — | — | |
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 ÷ Net sales
= 100 × -1,576 ÷ 21,065 = -7.48%
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. | United States Steel Corp. MVA margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |