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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- Common-Size Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Revenues
- Analysis of Debt
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MVA
Gilead Sciences Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Gilead
- The market value exhibited fluctuations over the five-year period. Initially, there was a decline from 113,422 million USD in 2020 to 104,920 million USD in 2021. This was followed by a significant increase to 125,424 million USD in 2022. Subsequently, the market value decreased again to 113,669 million USD in 2023 before rising sharply to 167,118 million USD by the end of 2024. Overall, despite interim decreases, the market value showed an upward trajectory from 2020 to 2024.
- Invested capital
- Invested capital displayed a gradual downward trend throughout the examined period. Starting at 50,285 million USD in 2020, it steadily declined each year, reaching 44,333 million USD by 2024. This consistent decrease indicates a reduction in the capital invested in the company over time.
- Market value added (MVA)
- Market value added shows variability but an overarching positive increase. The MVA decreased from 63,137 million USD in 2020 to 57,138 million USD in 2021 before experiencing a notable rise to 79,859 million USD in 2022. It then declined again to 67,845 million USD in 2023, followed by a substantial increase to 122,785 million USD in 2024. This pattern reflects fluctuations in market perception of value creation beyond invested capital, with a significant enhancement by the end of the period.
MVA Spread Ratio
Gilead Sciences Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
The analysis of the financial data reveals several noteworthy trends over the five-year period ending on December 31, 2024.
- Market Value Added (MVA)
- The MVA demonstrates considerable fluctuation across the years. Initially, there is a slight decline from 63,137 million US dollars in 2020 to 57,138 million US dollars in 2021. Subsequently, a marked increase to 79,859 million US dollars is observed in 2022, followed by a decrease to 67,845 million US dollars in 2023. The most significant change occurs in 2024, where the MVA nearly doubles to reach 122,785 million US dollars, indicating a substantial rise in market value added in the final year of the period.
- Invested Capital
- Invested capital shows a gradual downward trend over the examined timeframe. Starting at 50,285 million US dollars in 2020, it marginally decreases to 47,782 million in 2021, continues to 45,565 million in 2022, slightly increases to 45,824 million in 2023, and then declines again to 44,333 million in 2024. This suggests a steady reduction in the amount of capital invested, with minor short-term variation.
- MVA Spread Ratio
- The MVA spread ratio exhibits an overall upward trajectory with some volatility. It decreases slightly from 125.56% in 2020 to 119.58% in 2021, before sharply rising to 175.26% in 2022. Following this peak, the ratio dips to 148.05% in 2023, then surges dramatically to 276.96% in 2024, the highest point during the period. This indicates an improving spread between market value added and invested capital, especially pronounced in the last year.
In summary, despite a gradual decline in invested capital, the market value added has generally increased, particularly sharply in the final year. The MVA spread ratio reflects this trend, showing enhanced efficiency in generating market value relative to capital invested. The substantial jump in both MVA and MVA spread ratio in 2024 suggests improved market perceptions or operational performance driving increased value creation relative to the invested capital base.
MVA Margin
Gilead Sciences Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Product sales | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Product sales
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added experienced fluctuations over the period, initially declining from 63,137 million US dollars in 2020 to 57,138 million in 2021. It then increased significantly to 79,859 million in 2022, followed by a decrease to 67,845 million in 2023. The most notable change occurred in 2024, with a sharp rise to 122,785 million, reaching the highest value in the observed timeframe.
- Product Sales
- Product sales showed a relatively stable trend with slight growth overall. Starting at 24,355 million US dollars in 2020, sales increased to 27,008 million in 2021, remained relatively flat at around 26,982 million in 2022 and 26,934 million in 2023, and finally increased to 28,610 million in 2024. This indicates modest but steady sales performance with limited volatility.
- MVA Margin
- The MVA margin, expressed as a percentage, demonstrated notable volatility during the period. It started high at 259.24% in 2020, decreased to 211.56% in 2021, then increased sharply to 295.97% in 2022 before declining again to 251.89% in 2023. In 2024, the margin surged significantly to 429.17%, marking a substantial improvement in value creation relative to sales.
- Overall Analysis
- The data suggests that while product sales remained relatively steady with moderate growth, the company experienced significant fluctuations in market value and value creation efficiency. The sharp increase in MVA and MVA margin in 2024 indicates a marked improvement in market perception or operational performance, which was not entirely mirrored by product sales growth alone. The pattern of volatility in market value and margins points to possible strategic, market, or operational changes affecting value creation beyond just sales volume.