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
Old Dominion Freight Line Inc., MVA calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2018-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Old Dominion
- The market value exhibited a consistent upward trajectory over the five-year period. Starting at approximately $12.3 billion in 2018, it increased steadily each year, reaching around $37.8 billion by the end of 2022. This reflects a strong growth rate, especially notable between 2019 and 2020 and continuing through subsequent years, indicating growing investor confidence or company expansion.
- Invested capital
- The invested capital showed moderate growth over the same timeframe. Beginning at roughly $3.1 billion in 2018, it increased gradually to about $4.1 billion by 2022. The increments are relatively stable but modest compared to the changes in market value, suggesting steadier internal investment or asset base expansion.
- Market Value Added (MVA)
- The Market Value Added followed a significant upward trend aligned with the rise in market value. From an initial approximate value of $9.3 billion in 2018, the MVA surged substantially to nearly $33.7 billion by the end of 2022. This growth indicates that the market value greatly exceeds the invested capital, highlighting the creation of substantial shareholder value over the period. The increasing gap between market value and invested capital suggests enhanced operational performance, favorable market conditions, or successful strategic initiatives that have driven market valuation well above the capital employed.
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MVA Spread Ratio
Old Dominion Freight Line Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | 33,653,933) | 28,518,193) | 21,869,614) | 13,098,755) | 9,281,337) | |
| Invested capital2 | 4,117,551) | 3,881,401) | 3,423,416) | 3,453,801) | 3,056,198) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 817.33% | 734.74% | 638.82% | 379.26% | 303.69% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| FedEx Corp. | 39.69% | 83.76% | 39.69% | — | — | |
| Uber Technologies Inc. | 372.72% | 331.50% | — | — | — | |
| Union Pacific Corp. | 160.12% | 224.50% | — | — | — | |
| United Airlines Holdings Inc. | 2.17% | 9.50% | — | — | — | |
| United Parcel Service Inc. | 287.06% | 373.66% | — | — | — | |
Based on: 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), 10-K (reporting date: 2018-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2022 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 33,653,933 ÷ 4,117,551 = 817.33%
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added exhibited a consistent upward trajectory over the five-year period. Starting at approximately $9.28 billion in 2018, it increased each year, reaching about $33.65 billion by the end of 2022. This reflects a significant growth, more than tripling the initial value, indicating an enhanced market perception and value creation for shareholders.
- Invested Capital
- The invested capital showed moderate growth throughout the years. Beginning at roughly $3.06 billion in 2018, it rose steadily to approximately $4.12 billion by 2022. The growth rate in invested capital is considerably lower than that of MVA, suggesting the company is generating greater market value without proportionally increasing its capital base.
- MVA Spread Ratio
- The MVA spread ratio experienced a substantial increase during the period analyzed. From 303.69% in 2018, it climbed each year to reach 817.33% in 2022. This significant rise indicates an improved ability of the company to generate value in excess of the invested capital, reflecting efficient capital utilization and strong market performance.
- Overall Insights
- The data reveals a strong upward trend in market valuation relative to the invested capital. The expanding MVA and its spread ratio highlight substantial value creation and effective capital management. The company appears to be efficiently leveraging its invested capital to enhance shareholder wealth, as evidenced by the rapid acceleration in both market value added and MVA spread ratio despite only moderate increases in invested capital.
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MVA Margin
Old Dominion Freight Line Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | 33,653,933) | 28,518,193) | 21,869,614) | 13,098,755) | 9,281,337) | |
| Revenue from operations | 6,260,077) | 5,256,328) | 4,015,129) | 4,109,111) | 4,043,695) | |
| Performance Ratio | ||||||
| MVA margin2 | 537.60% | 542.55% | 544.68% | 318.77% | 229.53% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| FedEx Corp. | 28.21% | 64.08% | 33.00% | — | — | |
| Uber Technologies Inc. | 191.05% | 305.35% | — | — | — | |
| Union Pacific Corp. | 384.62% | 599.66% | — | — | — | |
| United Airlines Holdings Inc. | 1.98% | 20.01% | — | — | — | |
| United Parcel Service Inc. | 128.11% | 170.51% | — | — | — | |
Based on: 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), 10-K (reporting date: 2018-12-31).
1 MVA. See details »
2 2022 Calculation
MVA margin = 100 × MVA ÷ Revenue from operations
= 100 × 33,653,933 ÷ 6,260,077 = 537.60%
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added showed a consistent and significant increase over the five-year period, rising from approximately 9.28 billion US dollars in 2018 to over 33.65 billion US dollars in 2022. This indicates substantial growth in the company's market value, reflecting positive investor perception and value creation over time.
- Revenue from Operations
- Revenue exhibited moderate growth from 2018 to 2020, increasing slightly from about 4.04 billion to 4.02 billion US dollars. However, a notable uptick occurred in 2021, with revenue rising sharply to approximately 5.26 billion US dollars, and continued to grow robustly to 6.26 billion US dollars in 2022. This pattern suggests a strong recovery and expansion phase post-2020.
- MVA Margin
- The MVA margin, expressed as a percentage, increased dramatically between 2018 and 2020, from 229.53% to 544.68%, indicating an improvement in the efficiency of converting revenue into market value added. Although the margin slightly declined after 2020, it remained substantially elevated above 500% in both 2021 and 2022, signifying sustained high value creation relative to revenue despite minor fluctuations.
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