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
Cisco Systems Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27), 10-K (reporting date: 2018-07-28).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Cisco Systems Inc. market (fair) value less invested capital. | Cisco Systems Inc. MVA decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level. |
MVA Spread Ratio
Cisco Systems Inc., MVA spread ratio calculation, comparison to benchmarks
| Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | Jul 28, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 164,993) | 126,513) | 189,224) | 120,653) | 157,813) | 155,743) | |
| Invested capital2 | 58,979) | 59,063) | 57,460) | 53,498) | 53,469) | 50,294) | |
| Performance Ratio | |||||||
| MVA spread ratio3 | 279.75% | 214.20% | 329.31% | 225.53% | 295.15% | 309.66% | |
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Apple Inc. | 4,423.16% | 5,157.62% | 5,626.48% | 4,945.07% | 2,012.85% | 3,193.19% | |
| Arista Networks Inc. | 1,572.10% | 1,223.83% | 1,867.28% | 1,067.73% | 782.88% | — | |
| Super Micro Computer Inc. | 466.54% | 91.02% | 50.29% | 20.26% | 2.20% | 13.26% | |
Based on: 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27), 10-K (reporting date: 2018-07-28).
1 MVA. See details »
2 Invested capital. See details »
3 2023 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 164,993 ÷ 58,979 = 279.75%
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. | Cisco Systems Inc. MVA spread ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
MVA Margin
Cisco Systems Inc., MVA margin calculation, comparison to benchmarks
| Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | Jul 27, 2019 | Jul 28, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 164,993) | 126,513) | 189,224) | 120,653) | 157,813) | 155,743) | |
| Revenue | 56,998) | 51,557) | 49,818) | 49,301) | 51,904) | 49,330) | |
| Add: Increase (decrease) in deferred revenue | 2,286) | 1,100) | 1,718) | 1,979) | (1,218) | 1,191) | |
| Adjusted revenue | 59,284) | 52,657) | 51,536) | 51,280) | 50,686) | 50,521) | |
| Performance Ratio | |||||||
| MVA margin2 | 278.31% | 240.26% | 367.17% | 235.28% | 311.35% | 308.27% | |
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Apple Inc. | 695.76% | 609.53% | 653.71% | 648.08% | 392.95% | 317.17% | |
| Arista Networks Inc. | 1,189.21% | 844.68% | 1,096.71% | 834.74% | 575.84% | — | |
| Super Micro Computer Inc. | 158.07% | 38.71% | 18.13% | 7.52% | 0.71% | 4.29% | |
Based on: 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25), 10-K (reporting date: 2019-07-27), 10-K (reporting date: 2018-07-28).
1 MVA. See details »
2 2023 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenue
= 100 × 164,993 ÷ 59,284 = 278.31%
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. | Cisco Systems Inc. MVA margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |