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
MVA Spread Ratio
MVA Margin

Steel Dynamics Inc., MVA calculation

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Fair value of long-term debt, including current maturities¹	3,300,000)	3,400,000)	2,800,000)	2,400,000)	2,500,000)
Operating lease liability	100,074)	90,316)	75,429)	73,061)	47,100)
Market value of common equity	13,501,895)	9,286,334)	5,742,479)	8,504,794)	11,215,751)
Redeemable noncontrolling interests	211,414)	158,614)	143,614)	111,240)	111,240)
Noncontrolling interests	(195,884)	(155,552)	(154,593)	(159,082)	(156,506)
Less: Trading securities	—)	—)	262,174)	228,783)	—)
Market (fair) value of SDI	16,917,499)	12,779,712)	8,344,755)	10,701,230)	13,717,584)
Less: Invested capital²	8,550,168)	6,781,124)	6,721,821)	6,403,131)	5,964,900)
MVA	8,367,331)	5,998,588)	1,622,934)	4,298,099)	7,752,685)

Based on: 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), 10-K (reporting date: 2017-12-31).

¹ Fair value of debt. See details »

² Invested capital. See details »

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Item	Description	The company
MVA	Steel Dynamics Inc. market (fair) value less invested capital.	Steel Dynamics Inc. MVA increased from 2019 to 2020 and from 2020 to 2021.

Steel Dynamics Inc., MVA spread ratio calculation, comparison to benchmarks

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Selected Financial Data (US$ in thousands)
Market value added (MVA)¹	8,367,331)	5,998,588)	1,622,934)	4,298,099)	7,752,685)
Invested capital²	8,550,168)	6,781,124)	6,721,821)	6,403,131)	5,964,900)
Performance Ratio
MVA spread ratio³	97.86%	88.46%	24.14%	67.12%	129.97%
Benchmarks
MVA Spread Ratio, Competitors⁴
Freeport-McMoRan Inc.	138.11%	110.31%	29.32%	—	—
Newmont Corp.	116.86%	84.77%	63.30%	—	—

Based on: 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), 10-K (reporting date: 2017-12-31).

¹ MVA. See details »

² Invested capital. See details »

³ 2021 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 8,367,331 ÷ 8,550,168 = 97.86%

⁴ Click competitor name to see calculations.

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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.	Steel Dynamics Inc. MVA spread ratio improved from 2019 to 2020 and from 2020 to 2021.

Steel Dynamics Inc., MVA margin calculation, comparison to benchmarks

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Selected Financial Data (US$ in thousands)
Market value added (MVA)¹	8,367,331)	5,998,588)	1,622,934)	4,298,099)	7,752,685)
Net sales	18,408,850)	9,601,482)	10,464,991)	11,821,839)	9,538,797)
Performance Ratio
MVA margin²	45.45%	62.48%	15.51%	36.36%	81.28%
Benchmarks
MVA Margin, Competitors³
Freeport-McMoRan Inc.	210.68%	249.04%	57.35%	—	—
Newmont Corp.	263.58%	217.23%	188.10%	—	—

Based on: 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), 10-K (reporting date: 2017-12-31).

¹ MVA. See details »

² 2021 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × 8,367,331 ÷ 18,408,850 = 45.45%

³ Click competitor name to see calculations.

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Performance ratio	Description	The company
MVA margin	The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value.	Steel Dynamics Inc. MVA margin ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.

Steel Dynamics Inc. (NASDAQ:STLD)

Market Value Added (MVA)

MVA

MVA Spread Ratio

MVA Margin