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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Honeywell International Inc. pages available for free this week:
- Balance Sheet: Assets
- Analysis of Profitability Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Revenues
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MVA
Honeywell International Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Fair value of debt. See details »
2 Invested capital. See details »
The market value of Honeywell exhibited fluctuations over the five-year period. While an initial increase was noted between 2021 and 2022, the value subsequently decreased in 2023 before recovering and demonstrating substantial growth in 2024 and 2025. Invested capital also showed variability, with a slight decrease initially, followed by relative stability and then a significant increase in 2024 and 2025. Market value added (MVA) generally mirrored the trends in market value, with a peak in 2022, a dip in 2023, and strong growth in the final two years of the observed period.
- Market Value Trend
- The market value increased from US$149,775 million in 2021 to US$153,465 million in 2022, representing a growth of approximately 2.47%. A subsequent decline to US$149,780 million occurred in 2023. However, a notable recovery and expansion were observed in 2024 and 2025, with values reaching US$162,719 million and US$189,862 million respectively. This indicates a strengthening market perception of the company’s value in the latter part of the period.
- Invested Capital Trend
- Invested capital decreased from US$48,349 million in 2021 to US$47,332 million in 2022, a decrease of approximately 2.11%. It remained relatively stable at US$48,147 million in 2023. A substantial increase was then observed, rising to US$60,349 million in 2024 and further to US$61,387 million in 2025. This suggests increased investment in the business operations during the later years.
- Market Value Added (MVA) Trend
- MVA followed a similar pattern to market value. It increased from US$101,426 million in 2021 to US$106,133 million in 2022, before decreasing to US$101,633 million in 2023. A modest increase was seen in 2024, reaching US$102,370 million, followed by a significant jump to US$128,475 million in 2025. The growth in MVA in 2025 is particularly noteworthy, indicating a substantial increase in shareholder wealth creation relative to invested capital.
The increasing trend in both market value and MVA, coupled with the rising invested capital in 2024 and 2025, suggests positive performance and potentially successful strategic initiatives undertaken by the company during those years. The dip in 2023 warrants further investigation to understand the underlying factors contributing to the temporary decline.
MVA Spread Ratio
Honeywell International Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 MVA. See details »
2 Invested capital. See details »
3 2025 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited fluctuating growth over the five-year period. Initial growth from 2021 to 2022 was followed by a decline in 2023, a slight recovery in 2024, and a substantial increase in 2025. Simultaneously, Invested Capital demonstrated a decrease in 2022, followed by relative stability before increasing significantly in 2024 and 2025. The MVA spread ratio, reflecting the relationship between MVA and Invested Capital, mirrored these trends, showing volatility but ultimately returning to a level comparable to the earlier years.
- Market Value Added (MVA)
- MVA increased from US$101,426 million in 2021 to US$106,133 million in 2022, representing a growth of approximately 4.6%. A subsequent decrease to US$101,633 million occurred in 2023. A modest increase to US$102,370 million was observed in 2024, before a significant jump to US$128,475 million in 2025. This final increase suggests a substantial improvement in value creation during that year.
- Invested Capital
- Invested Capital decreased from US$48,349 million in 2021 to US$47,332 million in 2022. It remained relatively stable at US$48,147 million in 2023. A notable increase was then observed, rising to US$60,349 million in 2024 and further to US$61,387 million in 2025. This suggests increased investment activity in the later years of the period.
- MVA Spread Ratio
- The MVA spread ratio peaked at 224.23% in 2022, coinciding with the initial increase in MVA and the decrease in Invested Capital. It then decreased to 211.09% in 2023, and further to 169.63% in 2024, reflecting the slower growth in MVA and the increase in Invested Capital. The ratio rebounded to 209.29% in 2025, driven by the substantial increase in MVA, despite the continued growth in Invested Capital. The ratio indicates the amount of value created per dollar of invested capital; a higher ratio is generally favorable.
The interplay between MVA and Invested Capital suggests a dynamic relationship. While MVA experienced fluctuations, the significant increase in 2025, coupled with the rising Invested Capital, indicates a potentially positive trend in value creation efficiency. The MVA spread ratio’s return to a level similar to that of 2021 and 2022 further supports this observation.
MVA Margin
Honeywell International Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Net sales | ||||||
| Add: Increase (decrease) in customer advances and deferred income | ||||||
| Adjusted net sales | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 MVA. See details »
2 2025 Calculation
MVA margin = 100 × MVA ÷ Adjusted net sales
= 100 × ÷ =
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited fluctuating growth over the five-year period. Initially increasing from 2021 to 2022, it experienced a decline in 2023 before stabilizing in 2024 and then demonstrating substantial growth in 2025. Adjusted net sales showed a consistent upward trend from 2021 to 2024, with a slight decrease observed in 2025. The MVA margin, representing the relationship between MVA and adjusted net sales, mirrored the fluctuations in MVA, resulting in a dynamic pattern over the observed timeframe.
- Market Value Added (MVA)
- The MVA began at US$101,426 million in 2021 and rose to US$106,133 million in 2022, indicating value creation for stakeholders. A subsequent decrease to US$101,633 million in 2023 suggests a period of diminished value creation. The MVA remained relatively stable at US$102,370 million in 2024 before experiencing a significant increase to US$128,475 million in 2025, representing a substantial improvement in shareholder value.
- Adjusted Net Sales
- Adjusted net sales increased steadily from US$34,591 million in 2021 to US$38,524 million in 2024, demonstrating consistent revenue growth. A slight decline to US$37,818 million in 2025 was observed, potentially attributable to various market or operational factors. Despite this decrease, sales remained above the 2021 level.
- MVA Margin
- The MVA margin started at a high of 293.22% in 2021 and increased marginally to 295.90% in 2022. A decrease was then noted in 2023, falling to 278.88%, followed by a further decline to 265.73% in 2024. The margin experienced a significant increase in 2025, reaching 339.72%, coinciding with the substantial growth in MVA. This suggests that the company became more efficient at generating value relative to its sales in the final year of the period.
The observed fluctuations in the MVA margin highlight the sensitivity of value creation to both MVA and adjusted net sales. The substantial increase in the MVA margin in 2025 warrants further investigation to understand the underlying drivers of this improvement.