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
Microsoft Corp., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Microsoft Corp. market (fair) value less invested capital. | Microsoft Corp. MVA decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
MVA Spread Ratio
Microsoft Corp., MVA spread ratio calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 2,208,835) | 1,855,579) | 1,986,795) | 1,416,333) | 927,883) | 712,560) | |
| Invested capital2 | 247,490) | 194,094) | 143,637) | 107,630) | 96,412) | 82,555) | |
| Performance Ratio | |||||||
| MVA spread ratio3 | 892.49% | 956.02% | 1,383.21% | 1,315.93% | 962.41% | 863.13% | |
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Accenture PLC | 487.90% | 442.58% | 739.74% | 550.21% | 505.40% | 481.52% | |
| Adobe Inc. | 991.60% | 658.07% | 1,033.13% | 1,082.99% | 884.94% | 680.30% | |
| International Business Machines Corp. | 100.64% | 60.20% | 54.96% | 39.12% | 47.78% | — | |
| Intuit Inc. | 573.60% | 406.80% | 1,175.12% | 976.09% | 1,553.30% | 1,330.67% | |
| Oracle Corp. | 324.04% | 224.95% | 260.27% | 180.84% | 220.64% | 167.48% | |
| Palo Alto Networks Inc. | 731.80% | 559.27% | 573.47% | 267.90% | 424.76% | 461.39% | |
| Salesforce Inc. | 126.24% | 150.31% | 270.75% | 226.93% | 326.41% | — | |
| ServiceNow Inc. | 1,781.94% | 1,276.80% | 1,798.18% | 2,575.52% | 2,192.76% | — | |
| Synopsys Inc. | 973.25% | 565.55% | 707.79% | 468.10% | 272.11% | 150.54% | |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
1 MVA. See details »
2 Invested capital. See details »
3 2023 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 2,208,835 ÷ 247,490 = 892.49%
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. | Microsoft Corp. MVA spread ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
MVA Margin
Microsoft Corp., MVA margin calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 2,208,835) | 1,855,579) | 1,986,795) | 1,416,333) | 927,883) | 712,560) | |
| Revenue | 211,915) | 198,270) | 168,088) | 143,015) | 125,843) | 110,360) | |
| Add: Increase (decrease) in unearned revenue | 5,405) | 4,267) | 4,961) | 1,974) | 4,486) | 6,064) | |
| Adjusted revenue | 217,320) | 202,537) | 173,049) | 144,989) | 130,329) | 116,424) | |
| Performance Ratio | |||||||
| MVA margin2 | 1,016.40% | 916.17% | 1,148.11% | 976.86% | 711.95% | 612.04% | |
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Accenture PLC | 251.01% | 213.17% | 379.26% | 279.96% | 233.58% | 202.17% | |
| Adobe Inc. | 1,241.42% | 766.46% | 1,287.44% | 1,554.19% | 1,330.31% | 1,114.60% | |
| International Business Machines Corp. | 179.50% | 104.54% | 104.85% | 68.01% | 81.54% | — | |
| Intuit Inc. | 939.31% | 782.89% | 1,489.94% | 1,098.60% | 1,034.92% | 884.25% | |
| Oracle Corp. | 626.94% | 412.88% | 514.72% | 411.93% | 401.82% | 302.52% | |
| Palo Alto Networks Inc. | 726.58% | 651.57% | 771.68% | 434.92% | 469.62% | 683.93% | |
| Salesforce Inc. | 321.51% | 417.33% | 620.94% | 558.53% | 642.57% | — | |
| ServiceNow Inc. | 1,433.56% | 1,026.06% | 1,555.49% | 2,101.04% | 1,606.91% | — | |
| Synopsys Inc. | 1,373.41% | 796.87% | 1,126.17% | 803.94% | 470.26% | 256.95% | |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
1 MVA. See details »
2 2023 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenue
= 100 × 2,208,835 ÷ 217,320 = 1,016.40%
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. | Microsoft Corp. MVA margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |