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
Johnson & Johnson, MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2023-12-31), 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: 2019-12-29).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Johnson & Johnson market (fair) value less invested capital. | Johnson & Johnson MVA decreased from 2021 to 2022 and from 2022 to 2023. |
MVA Spread Ratio
Johnson & Johnson, MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 306,339) | 328,142) | 359,585) | 357,582) | 325,672) | |
| Invested capital2 | 99,118) | 113,927) | 98,203) | 98,488) | 96,969) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 309.06% | 288.03% | 366.17% | 363.07% | 335.85% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| AbbVie Inc. | 438.96% | 297.39% | 253.64% | 172.70% | 236.51% | |
| Amgen Inc. | 207.91% | 308.27% | 303.88% | 343.98% | 341.92% | |
| Bristol-Myers Squibb Co. | 100.64% | 160.91% | 138.81% | 109.83% | 90.05% | |
| Eli Lilly & Co. | 2,389.96% | 1,239.79% | 833.40% | 778.02% | 601.09% | |
| Gilead Sciences Inc. | 148.05% | 175.26% | 119.58% | 125.56% | 226.14% | |
| Merck & Co. Inc. | 412.35% | 312.72% | 223.02% | 292.93% | 328.56% | |
| Pfizer Inc. | 40.45% | 124.43% | 210.66% | 116.68% | 95.96% | |
| Regeneron Pharmaceuticals Inc. | 663.41% | 521.52% | 461.61% | 508.24% | 460.29% | |
| Thermo Fisher Scientific Inc. | 189.49% | 195.28% | 211.22% | 232.26% | 171.11% | |
Based on: 10-K (reporting date: 2023-12-31), 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: 2019-12-29).
1 MVA. See details »
2 Invested capital. See details »
3 2023 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 306,339 ÷ 99,118 = 309.06%
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. | Johnson & Johnson MVA spread ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
MVA Margin
Johnson & Johnson, MVA margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 306,339) | 328,142) | 359,585) | 357,582) | 325,672) | |
| Sales to customers | 85,159) | 94,943) | 93,775) | 82,584) | 82,059) | |
| Performance Ratio | ||||||
| MVA margin2 | 359.73% | 345.62% | 383.46% | 432.99% | 396.88% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| AbbVie Inc. | 551.18% | 420.74% | 432.93% | 391.08% | 446.12% | |
| Amgen Inc. | 540.65% | 493.74% | 503.37% | 550.26% | 575.79% | |
| Bristol-Myers Squibb Co. | 151.08% | 250.01% | 240.26% | 232.86% | 345.41% | |
| Eli Lilly & Co. | 2,058.21% | 1,055.66% | 769.29% | 778.57% | 578.77% | |
| Gilead Sciences Inc. | 251.89% | 295.97% | 211.56% | 259.24% | 321.38% | |
| Merck & Co. Inc. | 479.92% | 390.05% | 323.90% | 349.01% | 376.50% | |
| Pfizer Inc. | 107.10% | 137.35% | 227.20% | 289.28% | 224.34% | |
| Regeneron Pharmaceuticals Inc. | 605.08% | 525.04% | 312.14% | 495.20% | 382.11% | |
| Thermo Fisher Scientific Inc. | 378.46% | 360.17% | 431.35% | 441.03% | 352.63% | |
Based on: 10-K (reporting date: 2023-12-31), 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: 2019-12-29).
1 MVA. See details »
2 2023 Calculation
MVA margin = 100 × MVA ÷ Sales to customers
= 100 × 306,339 ÷ 85,159 = 359.73%
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. | Johnson & Johnson MVA margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |