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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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Income Statement
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Enterprise Value to EBITDA (EV/EBITDA)
- Present Value of Free Cash Flow to Equity (FCFE)
- Debt to Equity since 2005
- Price to Operating Profit (P/OP) since 2005
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MVA
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
The data indicates several notable trends over the six-year period ending March 31, 2022.
- Market (fair) value of Microchip
- The market value shows a generally increasing trend from 2017 through 2021, rising from approximately $24.1 billion to a peak of $49.5 billion. In 2022, the market value declined to $45.2 billion. This indicates significant growth over the first five years, followed by a moderate contraction in the final year observed.
- Invested capital
- Invested capital displayed volatility throughout the period. Starting at $6.1 billion in 2017, it decreased to about $5.1 billion in 2018 but then surged sharply to $14.7 billion in 2019. Subsequently, it gradually declined over the next three years, reaching approximately $11.9 billion in 2022. This pattern suggests fluctuations in the company’s capital base, with a notable expansion in 2019 followed by a steady decrease.
- Market value added (MVA)
- Market value added experienced growth in the early years, from $18.0 billion in 2017 to $21.8 billion in 2018. However, it then decreased significantly to $17.8 billion in 2019, before recovering slightly in 2020. From 2020 to 2021, MVA increased substantially, reaching a peak of $36.8 billion, followed by a decline to $33.3 billion in 2022. These fluctuations correspond closely with changes in market value and invested capital, reflecting shifts in the company's ability to generate value over its invested capital.
Overall, the data reveals growth in market value and market value added over the period, despite some volatility and a recent decrease in 2022. Invested capital saw pronounced changes, indicating shifts in the company’s capital investment strategy or asset base. The peak in market value and MVA in 2021 suggests a period of strong market performance, while the subsequent declines in 2022 may reflect external market conditions or internal company factors affecting valuation and capital efficiency.
MVA Spread Ratio
Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
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Selected Financial Data (US$ in thousands) | |||||||
Market value added (MVA)1 | |||||||
Invested capital2 | |||||||
Performance Ratio | |||||||
MVA spread ratio3 | |||||||
Benchmarks | |||||||
MVA Spread Ratio, Competitors4 | |||||||
Advanced Micro Devices Inc. | |||||||
Analog Devices Inc. | |||||||
Applied Materials Inc. | |||||||
Broadcom Inc. | |||||||
Intel Corp. | |||||||
KLA Corp. | |||||||
Lam Research Corp. | |||||||
Micron Technology Inc. | |||||||
NVIDIA Corp. | |||||||
Qualcomm Inc. | |||||||
Texas Instruments Inc. |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
1 MVA. See details »
2 Invested capital. See details »
3 2022 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added demonstrated notable fluctuations over the analyzed periods. Starting at approximately 18.04 billion US dollars in 2017, it increased significantly to about 21.84 billion in 2018. There was a decline in 2019 to roughly 17.82 billion, followed by a moderate recovery in 2020 reaching around 19.05 billion. A substantial rise occurred in 2021, with MVA peaking at approximately 36.81 billion before a slight decrease to about 33.27 billion in 2022. This pattern indicates variable market valuation performance with a strong peak in 2021.
- Invested Capital
- Invested capital demonstrated a declining trend across most years. Initially valued at approximately 6.09 billion US dollars in 2017, it decreased to around 5.15 billion in 2018. A marked increase is visible in 2019, reaching about 14.72 billion, but thereafter, it consistently declined, settling at roughly 13.73 billion in 2020, 12.64 billion in 2021, and 11.96 billion in 2022. Despite the spike in 2019, the overall trajectory suggests a reduction in invested capital after the peak year.
- MVA Spread Ratio
- The MVA spread ratio indicates the efficiency or value creation relative to invested capital. There was a sharp increase from 296.3% in 2017 to 424.19% in 2018, followed by a steep decline to 121.11% in 2019. Subsequently, the ratio slightly recovered to 138.77% in 2020 and then surged again to 291.13% in 2021, before tapering off moderately to 278.11% in 2022. This volatile pattern suggests significant variability in the company’s ability to generate market value above its invested capital.
- Overall Trends and Insights
- The financial metrics collectively depict a business environment characterized by volatility and fluctuating value creation. The sharp changes in market value added and MVA spread ratio highlight sensitivity to external or operational factors influencing market perception and capital efficiency. The generally decreasing trend in invested capital after 2019 suggests potential divestment or reduction in capital intensity. The peak performance in both market value added and MVA spread ratio in 2021 may reflect a particularly favorable period that requires further investigation to understand underlying drivers.
MVA Margin
Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||||
Market value added (MVA)1 | |||||||
Net sales | |||||||
Add: Increase (decrease) in deferred revenue | |||||||
Adjusted net sales | |||||||
Performance Ratio | |||||||
MVA margin2 | |||||||
Benchmarks | |||||||
MVA Margin, Competitors3 | |||||||
Advanced Micro Devices Inc. | |||||||
Analog Devices Inc. | |||||||
Applied Materials Inc. | |||||||
Broadcom Inc. | |||||||
Intel Corp. | |||||||
KLA Corp. | |||||||
Lam Research Corp. | |||||||
Micron Technology Inc. | |||||||
NVIDIA Corp. | |||||||
Qualcomm Inc. | |||||||
Texas Instruments Inc. |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
1 MVA. See details »
2 2022 Calculation
MVA margin = 100 × MVA ÷ Adjusted net sales
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added shows an overall increasing trend from 2017 to 2022 despite fluctuations. It started at approximately 18.0 billion US dollars in 2017, rose to a peak of about 21.8 billion in 2018, then decreased notably to around 17.8 billion in 2019. The value slightly recovered to 19.0 billion in 2020, followed by a significant surge to nearly 36.8 billion in 2021, before declining to approximately 33.3 billion in 2022.
- Adjusted Net Sales
- Adjusted net sales exhibited consistent growth throughout the period. Starting from roughly 3.4 billion US dollars in 2017, sales increased steadily, reaching about 4.0 billion in 2018 and climbing sharply to 5.3 billion in 2019. A minor decrease occurred in 2020 to approximately 5.3 billion, but sales rebounded and continued an upward trajectory, ending at nearly 6.9 billion in 2022, marking substantial overall growth.
- MVA Margin
- The MVA margin, representing the ratio of market value added to net sales, reflects significant volatility over the years. It began at around 529% in 2017, increased moderately to 549% in 2018, then dropped sharply to 333% in 2019. The margin showed some recovery in 2020, rising to 361%, followed by a strong increase to 677% in 2021. However, it decreased again to 480% in 2022. These fluctuations indicate varying efficiency or market perceptions in translating sales into shareholder value.