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

Linde plc, MVA calculation

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Fair value of debt and finance lease liabilities¹	18,243)	16,267)	14,558)	17,025)	14,107)
Operating lease liability	749)	721)	833)	906)	976)
Market value of common equity	217,287)	171,454)	148,891)	131,488)	105,606)
Redeemable noncontrolling interests	13)	13)	13)	13)	113)
Noncontrolling interests	1,362)	1,346)	1,393)	2,252)	2,448)
Market (fair) value of Linde	237,654)	189,801)	165,688)	151,684)	123,250)
Less: Invested capital²	73,409)	72,341)	72,560)	78,771)	78,533)
MVA	164,245)	117,460)	93,128)	72,913)	44,717)

Based on: 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), 10-K (reporting date: 2019-12-31).

¹ Fair value of debt. See details »

² Invested capital. See details »

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Item	Description	The company
MVA	Linde plc market (fair) value less invested capital.	Linde plc MVA increased from 2021 to 2022 and from 2022 to 2023.

Linde plc, MVA spread ratio calculation

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Market value added (MVA)¹	164,245)	117,460)	93,128)	72,913)	44,717)
Invested capital²	73,409)	72,341)	72,560)	78,771)	78,533)
Performance Ratio
MVA spread ratio³	223.74%	162.37%	128.35%	92.56%	56.94%

Based on: 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), 10-K (reporting date: 2019-12-31).

¹ MVA. See details »

² Invested capital. See details »

³ 2023 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 164,245 ÷ 73,409 = 223.74%

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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.	Linde plc MVA spread ratio improved from 2021 to 2022 and from 2022 to 2023.

Linde plc, MVA margin calculation

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Market value added (MVA)¹	164,245)	117,460)	93,128)	72,913)	44,717)
Sales	32,854)	33,364)	30,793)	27,243)	28,228)
Performance Ratio
MVA margin²	499.92%	352.06%	302.43%	267.64%	158.41%

Based on: 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), 10-K (reporting date: 2019-12-31).

¹ MVA. See details »

² 2023 Calculation
MVA margin = 100 × MVA ÷ Sales
= 100 × 164,245 ÷ 32,854 = 499.92%

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Performance ratio	Description	The company
MVA margin	The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value.	Linde plc MVA margin ratio improved from 2021 to 2022 and from 2022 to 2023.

Linde plc (NASDAQ:LIN)

Market Value Added (MVA)

MVA

MVA Spread Ratio

MVA Margin