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
Waste Management Inc., MVA calculation
US$ in millions
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 | Waste Management Inc. market (fair) value less invested capital. | Waste Management Inc. MVA decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
MVA Spread Ratio
Waste Management 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 millions) | ||||||
| Market value added (MVA)1 | 50,451) | 38,383) | 44,719) | 33,756) | 29,063) | |
| Invested capital2 | 22,932) | 23,729) | 22,640) | 18,435) | 17,686) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 220.00% | 161.75% | 197.52% | 183.11% | 164.33% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Cintas Corp. | 540.75% | 433.42% | 361.84% | — | — | |
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 × 50,451 ÷ 22,932 = 220.00%
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. | Waste Management Inc. MVA spread ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
MVA Margin
Waste Management 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 millions) | ||||||
| Market value added (MVA)1 | 50,451) | 38,383) | 44,719) | 33,756) | 29,063) | |
| Operating revenues | 17,931) | 15,218) | 15,455) | 14,914) | 14,485) | |
| Add: Increase (decrease) in deferred revenues | 32) | 5) | 12) | 19) | 10) | |
| Adjusted operating revenues | 17,963) | 15,223) | 15,467) | 14,933) | 14,495) | |
| Performance Ratio | ||||||
| MVA margin2 | 280.86% | 252.14% | 289.12% | 226.05% | 200.51% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Cintas Corp. | 511.81% | 397.03% | 341.21% | — | — | |
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 operating revenues
= 100 × 50,451 ÷ 17,963 = 280.86%
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. | Waste Management Inc. MVA margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |