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.
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 »
| Item | Description | The company |
|---|---|---|
| MVA | Marriott International Inc. market (fair) value less invested capital. | Marriott International Inc. MVA decreased from 2017 to 2018 and from 2018 to 2019. |
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 | 37,031) | 38,483) | 46,311) | 27,076) | 20,675) | |
| Invested capital2 | 13,992) | 14,627) | 14,229) | 16,537) | 758) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 264.66% | 263.10% | 325.48% | 163.72% | 2,728.35% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Airbnb Inc. | — | — | — | — | — | |
| Booking Holdings Inc. | 576.91% | — | — | — | — | |
| Carnival Corp. & plc | 22.47% | 46.60% | — | — | — | |
| Chipotle Mexican Grill Inc. | 518.95% | — | — | — | — | |
| McDonald’s Corp. | 386.54% | — | — | — | — | |
| Starbucks Corp. | 499.06% | 280.03% | — | — | — | |
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 × 37,031 ÷ 13,992 = 264.66%
4 Click competitor name to see calculations.
| 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. | Marriott International Inc. MVA spread ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
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 | 37,031) | 38,483) | 46,311) | 27,076) | 20,675) | |
| Revenues | 20,972) | 20,758) | 22,894) | 17,072) | 14,486) | |
| Add: Increase (decrease) in deferred revenue | 129) | 146) | —) | —) | —) | |
| Adjusted revenues | 21,101) | 20,904) | 22,894) | 17,072) | 14,486) | |
| Performance Ratio | ||||||
| MVA margin2 | 175.49% | 184.09% | 202.29% | 158.60% | 142.72% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Airbnb Inc. | — | — | — | — | — | |
| Booking Holdings Inc. | 422.06% | — | — | — | — | |
| Carnival Corp. & plc | 41.35% | 86.56% | — | — | — | |
| Chipotle Mexican Grill Inc. | 390.98% | — | — | — | — | |
| McDonald’s Corp. | 781.31% | — | — | — | — | |
| Starbucks Corp. | 382.96% | 235.14% | — | — | — | |
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 × 37,031 ÷ 21,101 = 175.49%
3 Click competitor name to see calculations.
| Performance 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. MVA margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |