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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MVA
Charter Communications Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Charter
- The market value shows a declining trend over the observed period. It decreased from US$219,750 million in 2020 to US$138,502 million in 2024, representing a significant reduction. The most notable drop occurred between 2021 and 2022, where the value fell sharply from US$207,197 million to US$147,813 million, continuing to decline gradually in subsequent years.
- Invested capital
- Invested capital remained relatively stable with a slight upward trajectory. Starting at US$133,151 million in 2020, it slightly declined in 2021 but then increased steadily from 2022 to 2024, reaching US$136,388 million. This indicates ongoing investment or capital infusion despite the declining market value.
- Market value added (MVA)
- Market value added experienced a pronounced decline throughout the period. Beginning at US$86,599 million in 2020, MVA dropped to US$2,114 million by the end of 2024. The most substantial decline was between 2021 and 2022, consistent with the steep fall in market value. The decreasing MVA suggests that the market's valuation premium over invested capital has considerably diminished, implying reduced investor confidence or market performance relative to the capital invested.
MVA Spread Ratio
Charter Communications Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Walt Disney Co. | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added shows a significant declining trend over the analyzed period. Starting at 86,599 million US dollars at the end of 2020, it decreased substantially to 2,114 million US dollars by the end of 2024. The decline is steepest between 2021 and 2022, continuing to trend downward through 2023 and 2024, indicating a reduction in the company's market value creation over time.
- Invested Capital
- Invested capital exhibits a slight upward trend throughout the period. It started at 133,151 million US dollars in 2020 and increased steadily to 136,388 million US dollars by 2024. The growth in invested capital is relatively stable and incremental, indicating ongoing or sustained investments in the company’s capital base despite the declining MVA.
- MVA Spread Ratio
- The MVA spread ratio, representing the efficiency of value creation relative to invested capital, shows a marked downward trend. From a high of 65.04% in 2020, it steadily decreased each year, reaching a low of 1.55% by the end of 2024. This decline underscores a diminishing rate of return on invested capital, reflecting challenges in generating value-added gains relative to investments.
- Overall Analysis
- The contrasting trends between invested capital and market value added suggest that while the company has modestly increased its investment base, it has not effectively converted these investments into market value over the given time frame. The sharp decline in both MVA and the MVA spread ratio highlights a potential decrease in profitability or market perception of future growth, which warrants further investigation into underlying operational or market conditions influencing these metrics.
MVA Margin
Charter Communications Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Revenues | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Walt Disney Co. | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added exhibits a pronounced downward trend over the five-year period. Beginning at a high of 86,599 million US dollars at the end of 2020, the figure decreases significantly each subsequent year, falling to 2,114 million US dollars by the end of 2024. This sharp decline indicates a substantial reduction in the company's market value creation relative to its capital invested.
- Adjusted Revenues
- Adjusted revenues display a gradual upward trajectory across the same timeframe. Starting from 48,074 million US dollars in 2020, revenues increase steadily year by year, reaching 55,032 million US dollars by the end of 2024. This consistent revenue growth suggests stable operational performance and possibly successful sales or service expansion.
- MVA Margin
- The MVA margin percentage shows a significant decrease from 180.14% in 2020 to just 3.84% in 2024. This sharp decline mirrors the trend observed in the market value added, indicating that the company’s efficiency in generating market value per unit of revenue has markedly deteriorated over the period.
- Overall Analysis
- Despite steady growth in adjusted revenues, the continuous and rapid decline in both Market Value Added and MVA margin suggests challenges in translating revenue growth into market value gains. The disparity between increasing revenues and declining market value-based metrics could reflect issues such as diminishing investor confidence, increased capital costs, or other factors impacting market perception. Consequently, the company’s value creation for shareholders has weakened significantly from 2020 to 2024.