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
Bed Bath & Beyond Inc., MVA calculation
US$ in thousands
Based on: 10-K (reporting date: 2022-02-26), 10-K (reporting date: 2021-02-27), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-03-02), 10-K (reporting date: 2018-03-03), 10-K (reporting date: 2017-02-25).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Bed Bath & Beyond
- The market value exhibited a clear downward trend from February 2017 to February 2020, declining from approximately 9.82 billion US dollars to around 3.94 billion US dollars. Notably, there was a temporary rebound in the fiscal year ending February 2021, where the market value increased to about 5.85 billion US dollars. However, this was not sustained as the market value dropped again to approximately 4.13 billion US dollars by February 2022.
- Invested capital
- The invested capital consistently decreased over the entire period under review. Starting from around 6.68 billion US dollars in February 2017, it gradually reduced each year, reaching approximately 3.29 billion US dollars by February 2022. This indicates a contraction in the capital base invested in the operations of the company during this timeframe.
- Market value added (MVA)
- The MVA demonstrated significant volatility and mostly negative values for the middle years. Initially, in February 2017, the MVA was positive at about 3.14 billion US dollars. Subsequently, it fell into negative territory for the next three years, reflecting a market value below the invested capital, with the lowest point observed in February 2020 at approximately -1.16 billion US dollars. There was a recovery observed in the fiscal year ending February 2021 when the MVA returned to a positive value of roughly 1.59 billion US dollars. This upward momentum subsided in February 2022 with the MVA declining to 846 million US dollars, remaining positive but significantly lower than the previous year.
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MVA Spread Ratio
Bed Bath & Beyond Inc., MVA spread ratio calculation, comparison to benchmarks
| Feb 26, 2022 | Feb 27, 2021 | Feb 29, 2020 | Mar 2, 2019 | Mar 3, 2018 | Feb 25, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Market value added (MVA)1 | 845,609) | 1,590,437) | (1,155,131) | (296,649) | (470,451) | 3,142,193) | |
| Invested capital2 | 3,288,320) | 4,261,005) | 5,094,957) | 5,788,203) | 6,556,645) | 6,680,896) | |
| Performance Ratio | |||||||
| MVA spread ratio3 | 25.72% | 37.33% | -22.67% | -5.13% | -7.18% | 47.03% | |
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Amazon.com Inc. | 342.01% | 728.57% | — | — | — | — | |
| Home Depot Inc. | 681.54% | 631.50% | — | — | — | — | |
| Lowe’s Cos. Inc. | 587.76% | 457.91% | — | — | — | — | |
| TJX Cos. Inc. | 333.18% | 327.36% | — | — | — | — | |
Based on: 10-K (reporting date: 2022-02-26), 10-K (reporting date: 2021-02-27), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-03-02), 10-K (reporting date: 2018-03-03), 10-K (reporting date: 2017-02-25).
1 MVA. See details »
2 Invested capital. See details »
3 2022 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 845,609 ÷ 3,288,320 = 25.72%
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The MVA shows significant volatility over the six-year period. Beginning with a substantial positive value in 2017, the MVA declines sharply into negative territory in the following years until 2020. A notable recovery occurs in 2021, with MVA turning strongly positive again, though this gain diminishes somewhat in 2022. This pattern indicates fluctuating market perceptions of the company’s value relative to its invested capital, with periods of both investor confidence and concern.
- Invested Capital
- Invested capital demonstrates a consistent downward trend throughout the period, decreasing steadily each year from over 6.6 billion USD in 2017 to approximately 3.3 billion USD in 2022. This nearly 50% reduction suggests ongoing asset divestiture, capital returns, or other strategic shifts aimed at reducing the company’s capital base.
- MVA Spread Ratio
- The MVA spread ratio mirrors the movement observed in MVA, beginning with a very high positive level in 2017 before dropping into negative values during 2018 through 2020. The negative spread ratio in these years implies returns below the company's cost of capital. It returns to a positive and elevated level in 2021, indicating improved value creation, although it declines somewhat in 2022 but remains positive since the preceding downturn. This overall trend highlights the company's fluctuating capacity to generate market value above its cost of capital during the period analyzed.
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MVA Margin
Bed Bath & Beyond Inc., MVA margin calculation, comparison to benchmarks
| Feb 26, 2022 | Feb 27, 2021 | Feb 29, 2020 | Mar 2, 2019 | Mar 3, 2018 | Feb 25, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Market value added (MVA)1 | 845,609) | 1,590,437) | (1,155,131) | (296,649) | (470,451) | 3,142,193) | |
| Net sales | 7,867,778) | 9,233,028) | 11,158,580) | 12,028,797) | 12,349,301) | 12,215,757) | |
| Performance Ratio | |||||||
| MVA margin2 | 10.75% | 17.23% | -10.35% | -2.47% | -3.81% | 25.72% | |
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Amazon.com Inc. | 178.50% | 312.93% | — | — | — | — | |
| Home Depot Inc. | 216.66% | 237.60% | — | — | — | — | |
| Lowe’s Cos. Inc. | 159.89% | 145.00% | — | — | — | — | |
| TJX Cos. Inc. | 135.17% | 227.93% | — | — | — | — | |
Based on: 10-K (reporting date: 2022-02-26), 10-K (reporting date: 2021-02-27), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-03-02), 10-K (reporting date: 2018-03-03), 10-K (reporting date: 2017-02-25).
1 MVA. See details »
2 2022 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × 845,609 ÷ 7,867,778 = 10.75%
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added experienced significant fluctuation during the observed period. Initially, in 2017, it was notably positive at approximately 3.14 billion USD. Subsequently, the metric turned negative for the next three fiscal years, reaching its lowest point in 2020 at about -1.16 billion USD. A recovery phase is observed beginning in 2021, with MVA returning to a positive value of roughly 1.59 billion USD before declining again to around 846 million USD in 2022.
- Net Sales
- Net sales followed a clear downward trend across the timeframe. Starting at about 12.22 billion USD in 2017, the revenue slightly increased in 2018 but then consistently declined each year thereafter. By 2022, net sales had decreased substantially to approximately 7.87 billion USD, indicating a continuous contraction in sales volume or pricing.
- MVA Margin
- The MVA margin, which represents the efficiency in generating market value relative to sales, demonstrated considerable volatility. In 2017, it was positive and strong at 25.72%. However, this margin sharply deteriorated into negative territory from 2018 through 2020, reaching a low of -10.35% in 2020. A marked improvement occurred in 2021 with a positive margin of 17.23%, followed by a decrease to 10.75% in 2022, indicating partial recovery but still below the initial level.
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