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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Marriott International Inc. pages available for free this week:
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
- Analysis of Revenues
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MVA
Marriott International Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
The financial data presents key indicators related to market valuation and invested capital over a five-year period.
- Market (fair) value of Marriott
- The market value shows a strong upward trend from 2015 through 2017, increasing markedly from 21,433 million US dollars in 2015 to 60,540 million US dollars in 2017. This represents a nearly threefold increase over two years. However, after 2017, the market value declines, falling to 53,109 million US dollars in 2018 and further to 51,023 million US dollars in 2019. The peak value in 2017 suggests a possible market optimism or peak performance that was not sustained in subsequent years.
- Invested capital
- Invested capital exhibits a significant increase from 758 million US dollars in 2015 to 16,537 million US dollars in 2016. Following this sharp rise, there is a noticeable decrease to 14,229 million US dollars in 2017, followed by relatively stable but slightly fluctuating levels around 14,600 million US dollars in 2018 and 13,992 million US dollars in 2019. The spike in 2016 could indicate a major capital investment or acquisition during that year, with stabilization in the subsequent years.
- Market value added (MVA)
- The MVA shows a generally increasing trend from 20,675 million US dollars in 2015 to a peak of 46,311 million US dollars in 2017. After this peak, it declines to 38,483 million US dollars in 2018 and further to 37,031 million US dollars in 2019. The pattern of MVA closely follows the market value trend, reflecting the value created beyond the invested capital. The reduction after 2017 suggests a decrease in market perception of value creation relative to the invested capital.
Overall, the data reveals a period of substantial growth and capital investment up to 2017, followed by a period of decline in market valuation and MVA despite relatively stable invested capital. This may point to underlying challenges impacting market confidence or operational performance after the growth years.
MVA Spread Ratio
Marriott International Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2019 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added shows a significant increase from 20,675 million USD at the end of 2015 to a peak of 46,311 million USD at the end of 2017, indicating strong market value growth during this period. However, after 2017, MVA declined to 38,483 million USD in 2018 and further to 37,031 million USD in 2019, reflecting a reduction in market value over the last two years of the dataset.
- Invested Capital
- Invested capital experienced a dramatic increase from 758 million USD in 2015 to 16,537 million USD in 2016. After this sharp rise, it has gradually decreased over the following years, dropping to 14,229 million USD in 2017, 14,627 million USD in 2018, and 13,992 million USD in 2019. This trend suggests an initial large capital deployment in 2016 followed by a slight reduction or optimization in invested capital over the subsequent years.
- MVA Spread Ratio
- The MVA spread ratio exhibits extreme volatility. It was exceptionally high at 2,728.35% in 2015, likely due to the relatively low invested capital in that year. This ratio sharply decreased to 163.72% in 2016, then increased again to 325.48% in 2017, followed by slight declines to 263.10% in 2018 and 264.66% in 2019. The fluctuations indicate significant proportional changes between market value added and invested capital, stabilizing somewhat at values above 260% in the last two years.
MVA Margin
Marriott International Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Revenues | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 MVA. See details »
2 2019 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added exhibited an overall increasing trend from 2015 to 2017, rising significantly from $20,675 million to $46,311 million. However, after peaking in 2017, it declined in the subsequent years, falling to $38,483 million in 2018 and further to $37,031 million in 2019. This suggests a strong value creation until 2017, followed by a notable decrease in shareholder value impact over the final two years analyzed.
- Adjusted Revenues
- Adjusted revenues showed consistent growth from 2015 through 2017, increasing from $14,486 million to $22,894 million. A decline occurred in 2018 to $20,904 million, followed by a modest recovery to $21,101 million in 2019. The revenue trend reflects overall expansion with some volatility, particularly a decrease in 2018 which may indicate operational or market challenges during that period.
- MVA Margin
- The MVA margin, representing the ratio of Market Value Added to adjusted revenues, increased steadily from 142.72% in 2015 to a high of 202.29% in 2017. Afterward, it progressively decreased to 184.09% in 2018 and to 175.49% in 2019. The trend signifies that the company's efficiency in generating market value relative to its revenues improved notably up to 2017 but diminished lightly in later years, aligning with the observed declines in MVA.