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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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Price to FCFE (P/FCFE)
- Total Asset Turnover since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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MVA
CSX Corp., MVA calculation
US$ in millions
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 CSX
- The market value demonstrates a generally upward trend from 2018 to 2021, increasing from $70,437 million to $96,969 million. However, in 2022, there is a decline to $81,829 million, indicating a notable decrease in market valuation after four years of growth.
- Invested capital
- Invested capital remains relatively stable over the period, with a slight increase from $34,219 million in 2018 to $38,278 million in 2022. The growth in invested capital is gradual, indicating limited additional capital investment over the years.
- Market value added (MVA)
- MVA follows a pattern similar to the market value, increasing from $36,218 million in 2018 to a peak of $59,325 million in 2021, before declining to $43,551 million in 2022. This trend reflects fluctuations in the market’s valuation of the company's value addition beyond invested capital, with a significant reduction in 2022.
MVA Spread Ratio
CSX Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| Union Pacific Corp. | ||||||
| United Airlines Holdings Inc. | ||||||
| United Parcel Service Inc. | ||||||
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.
The analysis of the annual financial indicators reveals several important trends.
- Market Value Added (MVA)
- The MVA displayed a general upward trend from 2018 through 2021, increasing significantly from US$36,218 million in 2018 to a peak of US$59,325 million in 2021. However, in 2022, the MVA declined noticeably to US$43,551 million, representing a reduction from the previous year and approaching the 2019 level.
- Invested Capital
- Invested capital exhibited a steady but modest increase over the analyzed period. It grew from US$34,219 million in 2018 to US$38,278 million in 2022. This consistent growth indicates ongoing investment or asset accumulation without significant fluctuations.
- MVA Spread Ratio
- The MVA spread ratio, which reflects value creation efficiency, followed a pattern similar to MVA. It increased from 105.84% in 2018 to a high of 157.59% in 2021, indicating improving value generation relative to capital invested. In 2022, the ratio decreased sharply to 113.77%, marking a deterioration in value generation performance compared to the previous year.
Overall, the data suggest strong value creation momentum from 2018 to 2021, with significant growth in market value added and improving returns on invested capital. The downturn in 2022, characterized by declines in both MVA and the MVA spread ratio, indicates a reversal of that trend and potential challenges in maintaining previous performance levels. Meanwhile, the steady increase in invested capital suggests continued commitment to asset growth despite the fluctuating value metrics.
MVA Margin
CSX Corp., MVA margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Revenue | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| Union Pacific Corp. | ||||||
| United Airlines Holdings Inc. | ||||||
| United Parcel Service Inc. | ||||||
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 ÷ Revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added shows a general upward trend from 2018 to 2021, increasing from 36,218 million USD in 2018 to 59,325 million USD in 2021. However, in 2022, the MVA decreased significantly to 43,551 million USD. This indicates a strong growth phase over the first four years, followed by a notable decline in the most recent period.
- Revenue
- Revenue has exhibited fluctuations over the five-year period. It started at 12,250 million USD in 2018, slightly decreasing to 11,937 million USD in 2019, and further declining to 10,583 million USD in 2020. Following this, revenue increased markedly to 12,522 million USD in 2021 and continued to grow to 14,853 million USD in 2022. The trend suggests recovery and growth after the initial downturn.
- MVA Margin
- The MVA margin, expressed as a percentage, indicates substantial variability. It increased sharply from 295.66% in 2018 to a peak of 482.63% in 2020. In 2021, the margin slightly decreased to 473.76%, followed by a significant drop to 293.21% in 2022. This pattern reflects the changes in market value added relative to revenue, with a peak corresponding to the previous increase in MVA and a decline matching the recent reduction in market value added.
- Summary
- Overall, the data reveal a period of growth in market value added and revenue up to 2021, with the MVA margin also peaking in 2020. The decline in market value added and MVA margin in 2022, despite continued revenue growth, suggests a reduction in the company's market valuation relative to its revenue, which could warrant further investigation into market conditions or operational factors affecting investor perception or profitability.