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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DexCom Inc. pages available for free this week:
- Income Statement
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Dividend Discount Model (DDM)
- Debt to Equity since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Debt
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MVA
DexCom Inc., MVA calculation
US$ in thousands
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
The financial data reveals significant trends related to the market value and invested capital of the company over the five-year period ending in 2022.
- Market (Fair) Value
- The market value displayed steady and considerable growth throughout the years. Starting from approximately $14.38 billion in 2018, it increased substantially each year, reaching over $43.25 billion in 2022. The most notable percentage growth occurred between 2018 and 2020, with the market value nearly tripling during this period. Post-2020, the growth pace slowed but still maintained a positive upward trend.
- Invested Capital
- The invested capital exhibited fluctuating values over the same period. Beginning at roughly $1.45 billion in 2018, it decreased in 2019 to about $836 million. Thereafter, it rose again, peaking at nearly $1.9 billion in 2021, before declining to around $1.65 billion in 2022. This instability in invested capital contrasts with the consistently growing market value, indicating varying levels of capital investment or changes in asset composition.
- Market Value Added (MVA)
- The MVA, which reflects the difference between market value and invested capital, closely followed the trend of the market value, showing considerable positive growth from approximately $12.93 billion in 2018 to over $41.6 billion in 2022. This persistent increase suggests that the company has been successfully generating value beyond its invested capital. Notably, the MVA experienced the most rapid increase in the initial years, similar to the market value trend, and maintained a high level despite slower growth in later periods.
In summary, the company has demonstrated strong value creation as evidenced by the continuous increase in market value and MVA, despite fluctuations in invested capital. The trends indicate robust market confidence and pricing, with the company adding significant value relative to the capital invested over time. The volatility in invested capital might reflect strategic investment decisions or changes in the capital structure, which did not negatively impact the overall market valuation growth.
MVA Spread Ratio
DexCom Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2022 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added has shown a consistent and significant upward trend from 2018 through 2022. Starting at approximately 12.93 billion USD in 2018, it more than tripled by 2020, reaching nearly 39.53 billion USD. After a slight plateau between 2020 and 2021, the value increased again in 2022 to approximately 41.61 billion USD, demonstrating robust growth in the company's market valuation over the analyzed period.
- Invested Capital
- Invested capital exhibited considerable fluctuations during the period. It started at approximately 1.45 billion USD in 2018, then declined significantly to around 836 million USD in 2019. This was followed by a recovery in subsequent years, peaking at about 1.90 billion USD in 2021 before a slight decrease to approximately 1.65 billion USD in 2022. The variations in invested capital suggest changes in the company’s investment strategy or asset base during these years.
- MVA Spread Ratio
- The MVA spread ratio, which represents the relationship between market value added and invested capital, shows extreme volatility. Beginning at 892.22% in 2018, it surged dramatically to over 2800% in 2019 and slightly increased to nearly 2891% in 2020. Subsequently, it declined to 2112.87% in 2021, before rebounding to approximately 2523% in 2022. These high ratios indicate that the market consistently values the company far beyond its invested capital, though the spread's fluctuation points to varying investor perceptions and market conditions over the years.
MVA Margin
DexCom Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Revenue | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted revenue | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 MVA. See details »
2 2022 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added shows a consistent upward trend over the five-year period. It increased from approximately 12.93 billion US dollars in 2018 to over 41.61 billion in 2022. This represents a significant growth in market valuation, with the most substantial increase occurring between 2019 and 2020. The growth rate slowed somewhat after 2020 but maintained a positive trajectory through 2022.
- Adjusted Revenue
- Adjusted revenue exhibits a steady and robust growth pattern, rising each year from about 1.03 billion US dollars in 2018 to nearly 2.92 billion in 2022. The increase is consistent and sizeable, indicating effective revenue expansion over the period. The yearly growth appears relatively stable and aligned with the company's increasing market value.
- MVA Margin
- The MVA margin, expressed as a percentage, demonstrates significant variability despite the overall upward trend in absolute market value. Starting at approximately 1253.76% in 2018, it rose sharply to a peak of 2051.23% in 2020, then declined in the subsequent years to 1424.53% by 2022. This pattern suggests that while market value increased, the efficiency or margin relative to revenue improved noticeably until 2020 but decreased somewhat afterwards.