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
Costco Wholesale Corp., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Costco Wholesale Corp. market (fair) value less invested capital. | Costco Wholesale Corp. MVA increased from 2021 to 2022 and from 2022 to 2023. |
MVA Spread Ratio
Costco Wholesale Corp., MVA spread ratio calculation, comparison to benchmarks
| Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | Sep 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 223,758) | 190,462) | 181,226) | 141,989) | 115,464) | 82,669) | |
| Invested capital2 | 34,903) | 31,671) | 28,508) | 29,043) | 23,959) | 20,758) | |
| Performance Ratio | |||||||
| MVA spread ratio3 | 641.08% | 601.38% | 635.70% | 488.89% | 481.92% | 398.25% | |
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Target Corp. | 210.89% | 289.75% | 247.97% | 151.69% | 106.62% | — | |
| Walmart Inc. | 195.10% | 201.42% | 174.24% | 145.51% | 124.63% | — | |
Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).
1 MVA. See details »
2 Invested capital. See details »
3 2023 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 223,758 ÷ 34,903 = 641.08%
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. | Costco Wholesale Corp. MVA spread ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
MVA Margin
Costco Wholesale Corp., MVA margin calculation, comparison to benchmarks
| Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | Sep 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 223,758) | 190,462) | 181,226) | 141,989) | 115,464) | 82,669) | |
| Net sales | 237,710) | 222,730) | 192,052) | 163,220) | 149,351) | 138,434) | |
| Performance Ratio | |||||||
| MVA margin2 | 94.13% | 85.51% | 94.36% | 86.99% | 77.31% | 59.72% | |
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Target Corp. | 59.25% | 83.51% | 81.84% | 53.60% | 37.31% | — | |
| Walmart Inc. | 48.16% | 55.42% | 51.59% | 46.83% | 38.77% | — | |
Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).
1 MVA. See details »
2 2023 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × 223,758 ÷ 237,710 = 94.13%
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. | Costco Wholesale Corp. MVA margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |