Microsoft Excel LibreOffice Calc

Marriott International Inc. (MAR)


Market Value Added (MVA)

Difficulty: Advanced

Market value added (MVA) is the difference between a firms’s 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

Marriott International Inc., MVA calculation

USD $ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Fair value of long-term debt, including current portion1 9,217  8,219  8,455  4,166  3,886 
PV of operating lease payments2 1,621  1,819  1,408  806  895 
Market value of common equity 42,272  50,502  33,750  16,461  22,981 
Market (fair) value of Marriott 53,109  60,540  43,613  21,433  27,762 
Less: Invested capital3 14,627  14,229  16,537  758  1,411 
MVA 38,483  46,311  27,076  20,675  26,351 

Based on: 10-K (filing date: 2019-03-01), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-18), 10-K (filing date: 2015-02-19).

1 Fair value of debt. See Details »

2 Present value of operating lease payments. See Details »

3 Invested capital. See Details »

Item Description The company
MVA Marriott International Inc.’s market (fair) value less invested capital. Marriott International Inc.’s MVA increased from 2016 to 2017 but then slightly declined from 2017 to 2018.

MVA Spread

Marriott International Inc., MVA spread calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Market value added (MVA)1 38,483  46,311  27,076  20,675  26,351 
Invested capital2 14,627  14,229  16,537  758  1,411 
Ratio
MVA spread3 263.10% 325.48% 163.72% 2,728.35% 1,867.31%

Based on: 10-K (filing date: 2019-03-01), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-18), 10-K (filing date: 2015-02-19).

2018 Calculations

1 MVA. See Details »

2 Invested capital. See Details »

3 MVA spread = 100 × MVA ÷ Invested capital
= 100 × 38,483 ÷ 14,627 = 263.10%

Ratio Description The company
MVA spread 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. Marriott International Inc.’s MVA spread improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.

MVA Margin

Marriott International Inc., MVA margin calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Market value added (MVA)1 38,483  46,311  27,076  20,675  26,351 
Revenues 20,758  22,894  17,072  14,486  13,796 
Add: Increase (decrease) in deferred revenue 146  –  –  –  – 
Adjusted revenues 20,904  22,894  17,072  14,486  13,796 
Ratio
MVA margin2 184.09% 202.29% 158.60% 142.72% 191.00%

Based on: 10-K (filing date: 2019-03-01), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-18), 10-K (filing date: 2015-02-19).

2018 Calculations

1 MVA. See Details »

2 MVA margin = 100 × MVA ÷ Adjusted revenues
= 100 × 38,483 ÷ 20,904 = 184.09%

Ratio Description The company
MVA margin The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value. Marriott International Inc.’s MVA margin improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.