Market Value Added (MVA)
Market value added (MVA) is the difference between a firms’s 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
Automatic Data Processing Inc., MVA calculation
US$ in thousands
Based on: 10-K (filing date: 2020-08-05), 10-K (filing date: 2019-08-09), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-04), 10-K (filing date: 2016-08-05), 10-K (filing date: 2015-08-07).
1 Fair value of debt. See details »
2 Invested capital. See details »
Item | Description | The company |
---|---|---|
MVA | Automatic Data Processing Inc.’s market (fair) value less invested capital. | Automatic Data Processing Inc.’s MVA increased from 2018 to 2019 but then decreased significantly from 2019 to 2020. |
MVA Spread Ratio
Automatic Data Processing Inc., MVA spread ratio calculation, comparison to benchmarks
Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||||
Market value added (MVA)1 | 50,930,738 | 65,914,432 | 53,973,010 | 44,448,304 | 35,524,187 | 31,569,795 | |
Invested capital2 | 9,580,300 | 9,463,158 | 7,289,794 | 7,519,836 | 7,921,908 | 6,104,700 | |
Performance Ratio | |||||||
MVA spread ratio3 | 531.62% | 696.54% | 740.39% | 591.08% | 448.43% | 517.14% | |
Benchmarks | |||||||
MVA Spread Ratio, Competitors4 | |||||||
Accenture PLC | 550.21% | 505.40% | 481.52% | 496.80% | 458.38% | 536.44% | |
Waste Management Inc. | — | 197.52% | 183.11% | 164.33% | 141.49% | 104.44% |
Based on: 10-K (filing date: 2020-08-05), 10-K (filing date: 2019-08-09), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-04), 10-K (filing date: 2016-08-05), 10-K (filing date: 2015-08-07).
1 MVA. See details »
2 Invested capital. See details »
3 2020 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 50,930,738 ÷ 9,580,300 = 531.62%
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. | Automatic Data Processing Inc.’s MVA spread ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
MVA Margin
Automatic Data Processing Inc., MVA margin calculation, comparison to benchmarks
Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||||
Market value added (MVA)1 | 50,930,738 | 65,914,432 | 53,973,010 | 44,448,304 | 35,524,187 | 31,569,795 | |
Revenues | 14,589,800 | 14,175,200 | 13,325,800 | 12,379,800 | 11,667,800 | 10,938,500 | |
Add: Increase (decrease) in deferred revenues | (36,900) | (53,800) | (20,000) | 10,000 | 23,000 | (21,000) | |
Adjusted revenues | 14,552,900 | 14,121,400 | 13,305,800 | 12,389,800 | 11,690,800 | 10,917,500 | |
Performance Ratio | |||||||
MVA margin2 | 349.97% | 466.77% | 405.64% | 358.75% | 303.86% | 289.17% | |
Benchmarks | |||||||
MVA Margin, Competitors3 | |||||||
Accenture PLC | 279.96% | 233.58% | 202.17% | 213.12% | 181.64% | 186.24% | |
Waste Management Inc. | — | 289.12% | 226.05% | 200.51% | 178.37% | 135.11% |
Based on: 10-K (filing date: 2020-08-05), 10-K (filing date: 2019-08-09), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-04), 10-K (filing date: 2016-08-05), 10-K (filing date: 2015-08-07).
1 MVA. See details »
2 2020 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenues
= 100 × 50,930,738 ÷ 14,552,900 = 349.97%
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. | Automatic Data Processing Inc.’s MVA margin ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |