Microsoft Excel LibreOffice Calc

Marriott International Inc. (NASDAQ:MAR)


Market Value Added (MVA)

Advanced level

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

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Fair value of long-term debt, including current portion1 11,222  9,217  8,219  8,455  4,166 
Operating lease liability 1,012  1,621  1,819  1,408  806 
Market value of common equity 38,789  42,272  50,502  33,750  16,461 
Market (fair) value of Marriott 51,023  53,109  60,540  43,613  21,433 
Less: Invested capital2 13,992  14,627  14,229  16,537  758 
MVA 37,031  38,483  46,311  27,076  20,675 

Based on: 10-K (filing date: 2020-02-27), 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).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA Marriott International Inc.’s market (fair) value less invested capital. Marriott International Inc.’s MVA decreased from 2017 to 2018 and from 2018 to 2019.

MVA Spread Ratio

Marriott International Inc., MVA spread ratio calculation

Microsoft Excel LibreOffice Calc
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%

Based on: 10-K (filing date: 2020-02-27), 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).

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%

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.’s MVA spread ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

MVA Margin

Marriott International Inc., MVA margin calculation

Microsoft Excel LibreOffice Calc
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%

Based on: 10-K (filing date: 2020-02-27), 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).

1 MVA. See details »

2 2019 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenues
= 100 × 37,031 ÷ 21,101 = 175.49%

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.’s MVA margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019.