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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MVA
Mondelēz International Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Mondelēz International
- The market value demonstrated an overall upward trend from 2020 to 2023, increasing from approximately $101.7 billion to $121.7 billion. This indicates growth in market perception and valuation during this period. However, in 2024, there was a significant decline to about $90.9 billion, representing a notable decrease compared to the previous year.
- Invested capital
- Invested capital remained relatively stable throughout the five-year period, fluctuating within a narrow range between approximately $60.3 billion and $63.8 billion. This stability suggests a consistent level of investment in the company's operational assets without significant expansion or contraction.
- Market value added (MVA)
- MVA showed considerable variability over the years. It increased from around $40.3 billion in 2020 to a peak of $60.3 billion in 2023, reflecting enhanced value creation above the invested capital. However, similar to the market value trend, MVA sharply decreased in 2024 to about $30.7 billion, indicating a reduced premium over the capital invested by shareholders.
MVA Spread Ratio
Mondelēz International Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Coca-Cola Co. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added exhibited fluctuations over the observed period. Starting from US$40,313 million in 2020, it increased markedly to US$52,422 million in 2021, followed by a decline to US$46,957 million in 2022. In 2023, MVA peaked at US$60,251 million, representing the highest value within the timeframe. However, the metric experienced a significant drop to US$30,685 million in 2024, indicating considerable volatility.
- Invested Capital
- Invested Capital remained relatively stable, with minor variations observed. The value was US$61,366 million in 2020 and rose slightly to US$61,560 million in 2021. It further increased to US$63,833 million in 2022 but then declined to US$61,495 million in 2023 and continued to fall to US$60,269 million in 2024. Overall, the capital base showed marginal reduction towards the end of the period, suggesting controlled asset management or divestitures.
- MVA Spread Ratio
- The MVA spread ratio, an efficiency indicator that measures value creation relative to invested capital, demonstrated a pattern of volatility. It stood at 65.69% in 2020, substantially rose to 85.16% in 2021, then decreased to 73.56% in 2022. In 2023, the ratio peaked at 97.98%, indicating the most effective value generation during the period. Nonetheless, 2024 saw a sharp decline to 50.91%, reflecting a notable deterioration in the ability to create market value over invested capital.
- Summary of Trends
- Throughout the five years, Market Value Added and the MVA spread ratio show marked volatility, with both reaching their highest points in 2023 and subsequently declining significantly in 2024. Invested Capital remained relatively stable but exhibited a slight downward trend after 2022. The results suggest that while the company was able to enhance market value relative to invested capital in most years, particularly in 2023, there was a reversal in 2024 that could merit further investigation. This could indicate operational challenges or external factors affecting value creation in the latest period.
MVA Margin
Mondelēz International Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Net revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Coca-Cola Co. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Net revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added demonstrates fluctuations over the five-year period. It increased significantly from 40,313 million US dollars in 2020 to a peak of 60,251 million US dollars in 2023, indicating strong value creation during that period. However, there was a notable decline in 2024 to 30,685 million US dollars, which may suggest a decrease in market perception of the company's incremental value or other external factors affecting market valuation.
- Net Revenues
- Net revenues exhibited a consistent upward trajectory each year, starting from 26,581 million US dollars in 2020 and rising steadily to 36,441 million US dollars in 2024. This persistent growth reflects an expanding operational scale or successful revenue-generating activities despite the fluctuations observed in market value added.
- MVA Margin
- The MVA margin, which evaluates the relationship between market value added and net revenues, displayed variability throughout the analyzed period. It increased from 151.66% in 2020 to a high of 182.53% in 2021, then declined significantly to 149.09% in 2022 before rising again to 167.29% in 2023. The margin experienced a pronounced drop in 2024 to 84.21%, aligning with the downward trend seen in MVA for the same year. This trend may suggest decreasing efficiency in converting revenues into market value added or shifts in investor sentiment.