Stock Analysis on Net

Costco Wholesale Corp. (NASDAQ:COST)

Market Value Added (MVA)

Microsoft Excel

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

Microsoft Excel
Aug 29, 2021 Aug 30, 2020 Sep 1, 2019 Sep 2, 2018 Sep 3, 2017 Aug 28, 2016
Fair value of long-term debt, including current portion and finance lease liabilities1 8,744  8,675  7,418  6,889  7,133  5,648 
Operating lease liability 2,864  2,789  1,882  1,825  1,851  1,814 
Market value of common equity 198,529  160,175  130,842  95,613  68,848  65,770 
Preferred stock $.01 par value; no shares issued and outstanding —  —  —  —  —  — 
Noncontrolling interests 514  421  341  304  301  253 
Less: Short-term investments 917  1,028  1,060  1,204  1,233  1,350 
Market (fair) value of Costco 209,734  171,032  139,423  103,427  76,900  72,135 
Less: Invested capital2 28,508  29,043  23,959  20,758  18,901  18,824 
MVA 181,226  141,989  115,464  82,669  57,999  53,311 

Based on: 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), 10-K (reporting date: 2017-09-03), 10-K (reporting date: 2016-08-28).

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 2019 to 2020 and from 2020 to 2021.

MVA Spread Ratio

Costco Wholesale Corp., MVA spread ratio calculation, comparison to benchmarks

Microsoft Excel
Aug 29, 2021 Aug 30, 2020 Sep 1, 2019 Sep 2, 2018 Sep 3, 2017 Aug 28, 2016
Selected Financial Data (US$ in millions)
Market value added (MVA)1 181,226  141,989  115,464  82,669  57,999  53,311 
Invested capital2 28,508  29,043  23,959  20,758  18,901  18,824 
Performance Ratio
MVA spread ratio3 635.70% 488.89% 481.92% 398.25% 306.85% 283.21%
Benchmarks
MVA Spread Ratio, Competitors4
Walmart Inc. 174.25% 145.51% 124.61% 127.07% 90.39%

Based on: 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), 10-K (reporting date: 2017-09-03), 10-K (reporting date: 2016-08-28).

1 MVA. See details »

2 Invested capital. See details »

3 2021 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 181,226 ÷ 28,508 = 635.70%

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 improved from 2019 to 2020 and from 2020 to 2021.

MVA Margin

Costco Wholesale Corp., MVA margin calculation, comparison to benchmarks

Microsoft Excel
Aug 29, 2021 Aug 30, 2020 Sep 1, 2019 Sep 2, 2018 Sep 3, 2017 Aug 28, 2016
Selected Financial Data (US$ in millions)
Market value added (MVA)1 181,226  141,989  115,464  82,669  57,999  53,311 
Net sales 192,052  163,220  149,351  138,434  126,172  116,073 
Performance Ratio
MVA margin2 94.36% 86.99% 77.31% 59.72% 45.97% 45.93%
Benchmarks
MVA Margin, Competitors3
Walmart Inc. 51.60% 46.83% 38.77% 36.53% 27.93%

Based on: 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), 10-K (reporting date: 2017-09-03), 10-K (reporting date: 2016-08-28).

1 MVA. See details »

2 2021 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × 181,226 ÷ 192,052 = 94.36%

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 improved from 2019 to 2020 and from 2020 to 2021.