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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MVA
Dollar Tree Inc., MVA calculation
US$ in thousands
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Dollar Tree
- The market value showed an overall increasing trend from 2017 through 2022, starting at approximately 30.79 billion US dollars and reaching 44.12 billion US dollars by early 2022. The value peaked in 2018 and 2019 at around 34.81 billion and 35.36 billion US dollars respectively, declined notably in 2020 to approximately 28.32 billion US dollars, and then rebounded sharply in the following years, surpassing previous peaks by 2021 and continuing upward to 44.12 billion in 2022.
- Invested capital
- Invested capital remained relatively stable over the period, fluctuating in a narrow range between approximately 16.99 billion and 19.85 billion US dollars. It saw a peak in early 2018 at 19.85 billion, followed by a decline over the next two years to a low of about 17.01 billion in 2019 and maintaining a similar level around 16.99 billion in 2020. Subsequently, there was a gradual increase through 2021 and 2022, reaching around 18.20 billion US dollars in early 2022.
- Market value added (MVA)
- MVA demonstrated a strong upward trajectory from 2017 through 2019, growing from about 11.62 billion to 18.35 billion US dollars. However, this indicator experienced a significant drop in 2020 to approximately 11.33 billion, paralleling the dip observed in market value. This decline was followed by a robust recovery in the subsequent years, with MVA increasing to 17.83 billion in 2021 and reaching an all-time high of approximately 25.92 billion US dollars in early 2022, suggesting enhanced value creation over invested capital during this later period.
MVA Spread Ratio
Dollar Tree Inc., MVA spread ratio calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Market value added (MVA)1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| MVA spread ratio3 | |||||||
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Costco Wholesale Corp. | |||||||
| Target Corp. | |||||||
| Walmart Inc. | |||||||
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
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 exhibit shows a fluctuating trend over the six-year period. Starting at approximately 11.62 billion USD in early 2017, the MVA increased steadily to about 18.35 billion USD in early 2019. However, a significant decline occurred in 2020 with the MVA falling to around 11.33 billion USD. This was followed by a sharp recovery and increase to nearly 25.92 billion USD by early 2022, marking the highest level in the observed period.
- Invested Capital
- Invested capital remained relatively stable with minor fluctuations throughout the period under review. Beginning at roughly 19.17 billion USD in 2017, there was a slight increase to about 19.85 billion USD in 2018, but then a notable decrease to approximately 17.01 billion USD in 2019. From there, invested capital plateaued in the range of 16.99 to 18.20 billion USD from 2020 through 2022, indicating a period of comparative stability.
- MVA Spread Ratio
- The MVA spread ratio, expressed as a percentage, reflects the relationship between market value added and invested capital. This ratio demonstrated an overall positive and upward trend, increasing from 60.63% in 2017 to a high of 142.41% in 2022. Despite some volatility, including a noticeable dip to 66.72% in 2020 corresponding with the decline in MVA that year, the ratio’s growth indicates improving returns relative to invested capital over the long term.
- Overall Insights
- The data indicates that while invested capital remained relatively stable with some decline around 2019, market value added experienced significant variability, including a steep decrease in 2020 followed by robust recovery through 2022. The increase in the MVA spread ratio corroborates improved value generation relative to the capital invested. This suggests enhanced market perception and possibly stronger operational performance or growth prospects in the latter years, especially post-2020.
MVA Margin
Dollar Tree Inc., MVA margin calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Market value added (MVA)1 | |||||||
| Net sales | |||||||
| Performance Ratio | |||||||
| MVA margin2 | |||||||
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Costco Wholesale Corp. | |||||||
| Target Corp. | |||||||
| Walmart Inc. | |||||||
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
1 MVA. See details »
2 2022 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added demonstrates notable fluctuations over the examined periods. It increased steadily from approximately 11.6 billion in early 2017 to around 18.3 billion in early 2019, indicating a phase of growth. However, there was a significant decline in early 2020, where the value dropped to about 11.3 billion. This was followed by a recovery and further growth, reaching approximately 25.9 billion by early 2022. This pattern suggests periods of both valuation challenges and strong market confidence in the latter years.
- Net Sales
- Net sales displayed a consistent upward trend throughout the periods, increasing from roughly 20.7 billion in early 2017 to about 26.3 billion by early 2022. This steady growth indicates positive revenue performance, with no observed declines or stagnation over the six-year span. The rate of increase appears moderate but consistent, reflecting ongoing business expansion or improved sales efficiency.
- MVA Margin
- The MVA margin, expressed as a percentage of net sales, exhibits considerable variability. It rose from 56.08% in early 2017 to a peak of 80.39% in early 2019, followed by a significant drop to 48% in early 2020. Subsequently, it rebounded to nearly 70% in early 2021 and surged to 98.52% by early 2022. These fluctuations highlight changes in the company's market value relative to its sales, indicating periods of differing market perceptions of shareholder value creation relative to revenue.