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
Netflix Inc., MVA calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2019-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Netflix Inc. market (fair) value less invested capital. | Netflix Inc. MVA decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
MVA Spread Ratio
Netflix Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | 226,355,276) | 140,461,330) | 157,648,896) | 229,788,230) | 143,998,934) | |
| Invested capital2 | 37,926,586) | 37,782,560) | 34,785,312) | 29,762,011) | 24,144,190) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 596.82% | 371.76% | 453.21% | 772.09% | 596.41% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Alphabet Inc. | 797.66% | 634.23% | 1,159.04% | 970.03% | 804.65% | |
| Comcast Corp. | 34.32% | 23.22% | 50.36% | 64.16% | 48.88% | |
| Meta Platforms Inc. | 767.10% | 380.86% | 579.06% | 791.20% | 773.13% | |
| Walt Disney Co. | 33.59% | 34.30% | 103.57% | 101.22% | 96.61% | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2023 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 226,355,276 ÷ 37,926,586 = 596.82%
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. | Netflix Inc. MVA spread ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
MVA Margin
Netflix Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | 226,355,276) | 140,461,330) | 157,648,896) | 229,788,230) | 143,998,934) | |
| Revenues | 33,723,297) | 31,615,550) | 29,697,844) | 24,996,056) | 20,156,447) | |
| Add: Increase (decrease) in deferred revenue | 178,308) | 55,319) | 91,350) | 193,247) | 163,846) | |
| Adjusted revenues | 33,901,605) | 31,670,869) | 29,789,194) | 25,189,303) | 20,320,293) | |
| Performance Ratio | ||||||
| MVA margin2 | 667.68% | 443.50% | 529.22% | 912.25% | 708.65% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Alphabet Inc. | 491.55% | 390.80% | 664.82% | 649.56% | 499.56% | |
| Comcast Corp. | 59.40% | 41.05% | 99.16% | 138.43% | 97.01% | |
| Meta Platforms Inc. | 802.73% | 332.57% | 454.84% | 744.17% | 715.58% | |
| Walt Disney Co. | 65.59% | 70.59% | 263.91% | 272.21% | 231.16% | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 MVA. See details »
2 2023 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenues
= 100 × 226,355,276 ÷ 33,901,605 = 667.68%
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. | Netflix Inc. MVA margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |