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
McDonald’s Corp., MVA calculation
US$ in thousands
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: 2019-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | McDonald’s Corp. market (fair) value less invested capital. | McDonald’s Corp. MVA increased from 2021 to 2022 and from 2022 to 2023. |
MVA Spread Ratio
McDonald’s Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | 215,526,776) | 193,716,116) | 188,148,263) | 168,460,106) | 164,928,942) | |
| Invested capital2 | 50,097,000) | 45,460,500) | 47,778,700) | 46,817,000) | 42,668,200) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 430.22% | 426.12% | 393.79% | 359.83% | 386.54% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Airbnb Inc. | 1,574.38% | 1,127.97% | 1,610.92% | 2,575.01% | — | |
| Booking Holdings Inc. | 1,200.63% | 645.29% | 637.90% | 662.28% | 576.91% | |
| Carnival Corp. & plc | 31.19% | 0.38% | 20.45% | 1.99% | 22.47% | |
| Chipotle Mexican Grill Inc. | 1,142.83% | 775.53% | 750.93% | 835.30% | 518.95% | |
| Starbucks Corp. | 540.56% | 553.87% | 552.49% | 492.67% | 499.06% | |
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: 2019-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2023 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 215,526,776 ÷ 50,097,000 = 430.22%
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. | McDonald’s Corp. MVA spread ratio improved from 2021 to 2022 and from 2022 to 2023. |
MVA Margin
McDonald’s Corp., MVA margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | 215,526,776) | 193,716,116) | 188,148,263) | 168,460,106) | 164,928,942) | |
| Revenues | 25,493,700) | 23,182,600) | 23,222,900) | 19,207,800) | 21,076,500) | |
| Add: Increase (decrease) in deferred revenues, initial franchise fees | 32,300) | 19,500) | 36,300) | 41,400) | 32,800) | |
| Adjusted revenues | 25,526,000) | 23,202,100) | 23,259,200) | 19,249,200) | 21,109,300) | |
| Performance Ratio | ||||||
| MVA margin2 | 844.34% | 834.91% | 808.92% | 875.15% | 781.31% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Airbnb Inc. | 903.08% | 890.34% | 1,449.11% | 3,942.51% | — | |
| Booking Holdings Inc. | 641.48% | 515.10% | 873.43% | 1,419.18% | 422.06% | |
| Carnival Corp. & plc | 56.95% | 1.40% | 498.53% | 17.42% | 41.35% | |
| Chipotle Mexican Grill Inc. | 693.54% | 483.19% | 544.85% | 685.47% | 390.98% | |
| Starbucks Corp. | 334.25% | 352.88% | 450.20% | 480.36% | 382.96% | |
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: 2019-12-31).
1 MVA. See details »
2 2023 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenues
= 100 × 215,526,776 ÷ 25,526,000 = 844.34%
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. | McDonald’s Corp. MVA margin ratio improved from 2021 to 2022 and from 2022 to 2023. |