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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- Income Statement
- Analysis of Profitability Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Analysis of Revenues
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MVA
Monolithic Power Systems Inc., MVA calculation
US$ in thousands
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).
2 Invested capital. See details »
The financial data over the five-year period presents several notable trends and insights regarding the company's market valuation and invested capital.
- Market (fair) value of MPS
- This metric shows a generally upward trajectory from 2020 through 2023, rising from approximately $17.5 billion to nearly $34.5 billion. This represents a strong growth phase, with a particularly significant increase between 2022 and 2023. However, in 2024, the market value declines to about $27.6 billion, indicating a contraction after the peak in 2023.
- Invested capital
- The invested capital has consistently increased over the five years, starting at around $635 million in 2020 and growing steadily to approximately $1.69 billion in 2024. This continuous rise suggests ongoing investment and expansion in the company’s operational base or assets.
- Market value added (MVA)
- The market value added, reflecting the value created beyond the invested capital, follows a pattern similar to the market value. It increases significantly from about $16.85 billion in 2020 to approximately $33 billion in 2023, indicating strong value creation during this period. In 2024, MVA decreases to roughly $25.9 billion, mirroring the decline seen in the market (fair) value.
Overall, the data reveals a phase of robust growth in market valuation and value creation through 2023, supported by increasing invested capital. The subsequent decrease in market and market value added in 2024 may suggest challenges or market corrections following a period of peak performance. The continuous growth in invested capital despite this decline could imply a strategy focused on long-term investment despite short-term market fluctuations.
MVA Spread Ratio
Monolithic Power Systems Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in 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: 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.
The financial indicators over the presented time frame exhibit considerable fluctuations and notable trends.
- Market Value Added (MVA)
- The Market Value Added shows a general upward trend from 2020 through 2023, increasing from approximately 16.85 billion USD in 2020 to nearly 33 billion USD in 2023. This represents a strong growth in the company’s market value over these years. However, in 2024, there is a decrease to approximately 25.87 billion USD, indicating a reversal in the trend and a substantial decline from the prior year's peak.
- Invested Capital
- Invested Capital has steadily increased throughout the entire period, rising from about 635 million USD in 2020 to nearly 1.69 billion USD in 2024. This consistent increase suggests ongoing investment and capital expenditure, likely aimed at supporting business growth and operational capacity expansion.
- MVA Spread Ratio
- The MVA spread ratio, which represents the efficiency with which the invested capital is generating market value, shows a fluctuating pattern. It peaks in 2021 at approximately 2962%, markedly higher than the starting 2653% in 2020. Following this peak, there is a sharp decline in 2022 to around 1719%, a partial recovery in 2023 to approximately 2236%, and another drop in 2024 to about 1531%. Despite the fluctuations, there is an overall downward tendency in the ratio from its peak, indicating decreasing relative returns on invested capital over time.
In summary, while the company has increased its invested capital consistently, the efficiency of transforming this capital into market value has become more variable and shows signs of decline after a peak in 2021. The decrease in MVA in 2024 further substantiates concerns regarding recent market performance and capital utilization efficiency.
MVA Margin
Monolithic Power Systems 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 thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Revenue | ||||||
| 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: 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 ÷ Revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
The financial data reveals several key trends over the five-year period from 2020 to 2024.
- Market Value Added (MVA)
- The MVA exhibits an overall increasing trend from 16.85 billion US dollars in 2020 to a peak of approximately 33.0 billion US dollars in 2023. In 2024, however, the MVA declines to about 25.87 billion US dollars. This fluctuation suggests significant growth in market valuation up to 2023, followed by a contraction in the latest year.
- Revenue
- Revenue demonstrates consistent growth throughout the period. It rises steadily from approximately 844 million US dollars in 2020 to 2.21 billion US dollars in 2024. This reflects a compound increase, indicating successful top-line expansion over these years.
- MVA Margin
- The MVA margin, calculated as a percentage, shows a declining trend from a high of roughly 1996% in 2020 to 1172% in 2024, reaching a low point near 1180% in 2022 before briefly increasing in 2023. This decline indicates that while the market value added increased substantially in nominal terms, its growth has not kept pace proportionally with revenue growth, suggesting a decreasing efficiency in translating revenue growth into market value enhancement over time.