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.
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- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
- Aggregate Accruals
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MVA
Axon Enterprise Inc., MVA calculation
US$ in thousands
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 »
- Market (fair) value of Axon
- The market value of the company exhibited a consistent upward trend over the five-year period. Starting from approximately $3.28 billion at the end of 2018, it increased substantially to about $4.39 billion in 2019. There was a significant surge in 2020, with the market value reaching slightly over $10 billion. Although a slight decline was observed in 2021 to around $9.42 billion, the value recovered strongly in 2022, climbing to approximately $14.55 billion. Overall, this represents a strong growth trajectory with a notable peak in 2020 followed by minor volatility.
- Invested capital
- Invested capital demonstrated some variability across the reviewed years. It initially decreased from around $632 million in 2018 to approximately $500 million in 2019. Subsequently, there was a marked increase in 2020, reaching about $723 million. This upward momentum continued more robustly in 2021 and 2022, culminating at approximately $1.61 billion by the end of 2022. The increase in invested capital in the last three years indicates expansions or increased resource deployment.
- Market Value Added (MVA)
- The Market Value Added followed a pattern aligned with the changes in market value and invested capital. From around $2.65 billion at the end of 2018, MVA increased significantly to nearly $3.89 billion in 2019. It experienced a substantial rise in 2020 to approximately $9.36 billion. Despite a decline in 2021 to about $8.16 billion, MVA surged again in 2022, reaching nearly $12.94 billion. This trend suggests considerable value creation above the invested capital, particularly pronounced in the years 2020 and 2022.
MVA Spread Ratio
Axon Enterprise Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
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 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added demonstrated a strong upward trajectory over the analyzed period. Starting at approximately 2.65 billion US dollars at the end of 2018, it increased significantly to roughly 3.89 billion in 2019. This growth accelerated in 2020, reaching approximately 9.36 billion. However, there was a notable decline in 2021, with MVA dropping to about 8.16 billion. The figure rebounded in 2022 to a new high of approximately 12.94 billion. Overall, despite the dip in 2021, the trend evidences substantial growth in market value added over the five-year span.
- Invested Capital
- Invested capital showed a fluctuating yet generally increasing pattern. It began at 631.7 million US dollars at the end of 2018, then decreased to around 500.3 million in 2019. From 2020 onwards, invested capital grew steadily, rising to approximately 722.7 million in 2020, followed by a significant increase to about 1.26 billion in 2021. In 2022, invested capital continued its upward trend, reaching around 1.61 billion. This progression indicates increasing commitments to capital investment after an initial year of decline.
- MVA Spread Ratio (%)
- The MVA spread ratio experienced considerable volatility but maintained an overall high level throughout the period. It surged from 418.83% in 2018 to 777.94% in 2019, and further escalated to 1295.06% in 2020. In 2021, the ratio sharply decreased to 646.2%, aligning with the drop observed in the market value added. Nonetheless, in 2022 the ratio improved again to 804.88%, signifying an enhanced return in terms of market value added relative to invested capital despite the earlier volatility.
- Summary of Trends
- The data reveals strong growth in market value added, with a peak in 2022 despite a temporary decline in 2021. Invested capital initially fell but then increased substantially from 2020 onward. The MVA spread ratio mirrored these movements, highlighting a high return on invested capital, particularly marked in 2020, followed by some fluctuations. These patterns suggest robust value creation aligned with increased investment, with some cyclical variation in efficiency or market perception over the analyzed timeframe.
MVA Margin
Axon Enterprise Inc., 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 thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Net sales | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted net sales | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
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 ÷ Adjusted net sales
= 100 × ÷ =
3 Click competitor name to see calculations.
The financial data reveals several notable trends over the five-year period ending December 31, 2022. Market value added (MVA) showed a general upward trajectory, beginning at approximately $2.65 billion in 2018 and increasing to about $12.94 billion by 2022. Despite a dip in 2021 from its 2020 peak of roughly $9.36 billion, the MVA rebounded strongly in 2022, indicating enhanced value creation for shareholders in the most recent year.
Adjusted net sales exhibited consistent growth throughout the timeframe, increasing steadily from $476.2 million in 2018 to $1.35 billion in 2022. This suggests a positive trend in revenue generation, reflecting either increased sales volume, pricing improvements, or a combination of both.
The MVA margin, expressed as a percentage, showed considerable volatility but maintained an overall upward momentum. Starting from 555.53% in 2018, it peaked sharply at 1247.36% in 2020 before declining to 785.07% in 2021 and then recovering to 960.95% in 2022. The margin's fluctuation suggests changing efficiency in translating sales into market value added, with the 2020 peak indicating a period of exceptional value creation relative to sales.
- Market Value Added (MVA)
- Increased significantly over five years, demonstrating growth in shareholder value. A temporary decline in 2021 was followed by a strong recovery in 2022.
- Adjusted Net Sales
- Displayed uninterrupted growth, more than doubling from 2018 to 2022, indicating expanding sales operations or improved market penetration.
- MVA Margin
- Highly variable but generally increased, highlighting fluctuations in the company's efficiency or profitability relative to its sales; the peak in 2020 suggests an anomalously high value creation period.