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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- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Debt to Equity since 2005
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MVA
Ross Stores Inc., MVA calculation
US$ in thousands
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Ross Stores
- The market value showed an overall upward trend from 2017 to 2022, increasing from approximately $29.0 billion to nearly $39.3 billion. The market value rose steadily from 2017 to 2019, peaking at around $38.2 billion in 2019. However, it decreased to about $34.5 billion in 2020 before rebounding sharply to approximately $48.9 billion in 2021. This was followed by a decline to roughly $39.3 billion in 2022, indicating some volatility in market valuation during the recent years.
- Invested capital
- Invested capital showed a consistent increase over the period, growing from approximately $6.0 billion in 2017 to around $9.2 billion in 2022. The growth in invested capital was steady, with only a slight decline observed in 2020, decreasing from about $6.9 billion in 2019 to $6.8 billion in 2020. From 2020 onwards, invested capital resumed its upward trend, reflecting ongoing investment or asset acquisition strategies.
- Market value added (MVA)
- The market value added also exhibited a generally increasing pattern, rising from approximately $23.0 billion in 2017 to a peak of nearly $40.2 billion in 2021. Similar to the market value, MVA experienced a drop in 2020 to about $27.7 billion, followed by a strong recovery in 2021. The latest data from 2022 show a decrease to approximately $30.1 billion, suggesting a contraction in the value created over and above the invested capital compared to the previous year.
MVA Spread Ratio
Ross Stores Inc., MVA spread ratio calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Market value added (MVA)1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| MVA spread ratio3 | |||||||
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Amazon.com Inc. | |||||||
| Home Depot Inc. | |||||||
| Lowe’s Cos. Inc. | |||||||
| TJX Cos. Inc. | |||||||
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
1 MVA. See details »
2 Invested capital. See details »
3 2022 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added exhibits a generally positive trend from 2017 to 2022, with some fluctuations. It increased significantly from approximately 22.998 billion USD in 2017 to a peak of about 40.169 billion USD in 2021. However, in 2022, there was a notable decline to roughly 30.052 billion USD, indicating a reduction in the market's valuation of the company’s invested capital despite the prior growth.
- Invested Capital
- Invested capital shows a consistent upward trend over the six-year period. From approximately 6.022 billion USD in 2017, it rose steadily to around 9.245 billion USD by 2022. This steady increase reflects ongoing investment into the company’s assets or capital base, which may support future growth and operations.
- MVA Spread Ratio
- The MVA spread ratio, representing the efficiency or effectiveness of invested capital in creating market value, generally increased from about 382% in 2017 to a peak of approximately 458% in 2021. This indicates positive returns on invested capital and growing market value addition per unit of invested capital. However, in 2022, this ratio dropped significantly to roughly 325%, suggesting a decrease in market value creation efficiency despite higher invested capital levels.
MVA Margin
Ross Stores Inc., MVA margin calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Market value added (MVA)1 | |||||||
| Sales | |||||||
| Performance Ratio | |||||||
| MVA margin2 | |||||||
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Amazon.com Inc. | |||||||
| Home Depot Inc. | |||||||
| Lowe’s Cos. Inc. | |||||||
| TJX Cos. Inc. | |||||||
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
1 MVA. See details »
2 2022 Calculation
MVA margin = 100 × MVA ÷ Sales
= 100 × ÷ =
3 Click competitor name to see calculations.
The analysis of Ross Stores Inc.'s financial data reveals several notable trends over the six-year period examined.
- Market Value Added (MVA)
- The Market Value Added experienced a general upward trend from 2017 to 2019, increasing from approximately $22.998 billion to $31.272 billion, indicating increasing shareholder value during this period. However, a decline occurred in 2020 to about $27.655 billion, followed by a sharp rebound to nearly $40.169 billion in 2021. The value then decreased again in 2022 to approximately $30.052 billion. Overall, despite fluctuations, the MVA showed significant growth compared to the beginning of the period.
- Sales
- Sales demonstrated a consistent increasing trend from 2017 through 2020, rising from roughly $12.867 billion to $16.039 billion. Interestingly, a decline occurred in 2021, with sales dropping substantially to approximately $12.531 billion. This was followed by a strong recovery in 2022, where sales reached a new high of approximately $18.916 billion. The dip in 2021 sales may reflect external challenges or operational impacts during that fiscal year.
- MVA Margin
- The MVA margin percentage showed variability across the years. It gradually increased from 178.74% in 2017 to a peak of 208.71% in 2019, suggesting improved efficiency or profitability relative to sales. However, a notable decrease occurred in 2020, lowering the margin to 172.42%. In 2021, an exceptional increase to 320.54% was observed, potentially indicating a substantial market valuation improvement relative to sales in that year. Conversely, in 2022, the margin dropped sharply to 158.87%, the lowest level in the period evaluated, which might suggest increased sales relative to market value or other influencing factors.
In summary, the company experienced growth in both market valuation and sales over the long term, with significant volatility, particularly in 2021. The fluctuations in the MVA margin suggest periods of varying efficiency or investor valuation sentiment relative to sales performance. The data indicates resilience, with strong recovery after declines, but also points to sensitivity to market or operational conditions affecting sales and valuation ratios.