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
United Airlines Holdings Inc., MVA calculation
US$ in millions
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 »
| Item | Description | The company |
|---|---|---|
| MVA | United Airlines Holdings Inc. market (fair) value less invested capital. | United Airlines Holdings Inc. MVA increased from 2020 to 2021 but then decreased significantly from 2021 to 2022. |
MVA Spread Ratio
United Airlines Holdings 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 millions) | ||||||
| Market value added (MVA)1 | 885) | 4,962) | 4,651) | (1,121) | 6,801) | |
| Invested capital2 | 40,501) | 50,865) | 45,358) | 37,538) | 40,642) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 2.19% | 9.76% | 10.25% | -2.99% | 16.73% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| FedEx Corp. | 39.69% | 83.76% | 39.69% | 45.89% | 73.80% | |
| Uber Technologies Inc. | 372.72% | 331.50% | 420.06% | 206.61% | — | |
| Union Pacific Corp. | 160.12% | 224.50% | 191.78% | 172.47% | — | |
| United Parcel Service Inc. | 287.08% | 373.64% | 415.72% | 232.28% | — | |
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 × 885 ÷ 40,501 = 2.19%
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. | United Airlines Holdings Inc. MVA spread ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
MVA Margin
United Airlines Holdings 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 millions) | ||||||
| Market value added (MVA)1 | 885) | 4,962) | 4,651) | (1,121) | 6,801) | |
| Operating revenue | 44,955) | 24,634) | 15,355) | 43,259) | 41,303) | |
| Add: Increase (decrease) in frequent flyer deferred revenue | 393) | 307) | 699) | 271) | 222) | |
| Adjusted operating revenue | 45,348) | 24,941) | 16,054) | 43,530) | 41,525) | |
| Performance Ratio | ||||||
| MVA margin2 | 1.95% | 19.90% | 28.97% | -2.58% | 16.38% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| FedEx Corp. | 28.21% | 64.08% | 33.00% | 34.92% | 60.35% | |
| Uber Technologies Inc. | 191.05% | 305.35% | 793.36% | 298.93% | — | |
| Union Pacific Corp. | 384.62% | 599.66% | 572.79% | 454.49% | — | |
| United Parcel Service Inc. | 128.12% | 170.51% | 162.99% | 113.97% | — | |
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 ÷ Adjusted operating revenue
= 100 × 885 ÷ 45,348 = 1.95%
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. | United Airlines Holdings Inc. MVA margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |