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
MVA Spread Ratio
MVA Margin

Costco Wholesale Corp., MVA calculation

US$ in millions

	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.

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

	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.

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

	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.

Costco Wholesale Corp. (NASDAQ:COST)

Market Value Added (MVA)

MVA

MVA Spread Ratio

MVA Margin