AmerisourceBergen Corp. (NYSE:ABC)

The financial data reflects several significant trends in key financial metrics over the period from 2017 to 2022.

Market (fair) value of AmerisourceBergen

The market value exhibits an overall upward trajectory throughout the six-year span. Starting at approximately $21.1 billion in 2017, it moderately increased to about $23.5 billion in 2018. A slight decline occurred in 2019, lowering the value to nearly $22.97 billion. However, subsequent years showed robust growth, culminating in a substantial rise to over $40.3 billion by 2022. This represents nearly a doubling of market value from 2017, indicating enhanced market perception and valuation of the company during this period.

Invested capital

Invested capital remained relatively stable with moderate growth initially, increasing from about $10.9 billion in 2017 to roughly $12.3 billion in 2019. A notable decrease is observed in 2020, where invested capital dropped sharply to approximately $7.1 billion. This decline is significant and may reflect divestitures, asset sales, or operational changes affecting capital deployment. Following 2020, invested capital rebounded to around $12.9 billion in 2021 and slightly increased to $13.0 billion in 2022, returning close to prior levels before the 2020 dip.

Market value added (MVA)

Market value added, representing the value created above invested capital, generally increased over the period. Starting at just above $10.25 billion in 2017, MVA climbed steadily to nearly $11.3 billion in 2018, followed by a marginal decline in 2019. A pronounced increase occurred in 2020, jumping to approximately $18.9 billion, which aligns with the reduction in invested capital, potentially magnifying value creation metrics. MVA continued its upward path through 2021 and 2022, reaching approximately $27.36 billion, indicating strong value generation and improved market capitalization relative to invested capital.

In summary, the company demonstrated strong market value growth coupled with fluctuating invested capital, notably declining in 2020 before recovering. The increasing market value added over the period signals enhanced value creation, suggesting effective management of capital and favorable market conditions in the latter years.

Market Value Added (MVA)

The market value added exhibits a general upward trend over the analyzed period. It increased from approximately 10.25 billion US dollars in 2017 to 27.36 billion US dollars in 2022, with a notable surge between 2019 and 2020, where the figure jumped from about 10.62 billion to 18.87 billion US dollars. This indicates significantly improved market valuation and value creation over time.

Invested Capital

Invested capital shows fluctuations across the years with a peak in 2019 at roughly 12.35 billion US dollars, followed by a substantial decline to 7.13 billion in 2020. Afterward, it recovered to around 13 billion US dollars by 2022. The dip in 2020 suggests a possible reduction in capital investment or asset base during this period, which then normalized in subsequent years.

MVA Spread Ratio

The MVA spread ratio reveals significant variability. It declined gradually from 94.3% in 2017 to a low of 86.02% in 2019, before sharply rising to 264.72% in 2020. After decreasing to 165.7% in 2021, it increased again to 210.14% in 2022. These variations signal changes in the efficiency and value generation relative to the invested capital, with 2020 marking a prominent peak, likely reflecting improved returns or market perceptions despite the lower invested capital.

Overall Insights

The data demonstrates a complex relationship between invested capital and market value added. The sharp decline in invested capital in 2020 did not impede market value added growth; instead, it corresponded with a significant increase in the MVA spread ratio, indicating enhanced capital efficiency or favorable market conditions during that year and afterward. The subsequent recovery of invested capital alongside continued growth in market value added suggests a robust business performance and market confidence from 2020 through 2022.

Market Value Added (MVA)

The Market Value Added shows a general upward trend over the analyzed period. Starting at approximately 10.25 billion USD in 2017, it experienced a moderate increase through 2019 but then significantly accelerated from 2020 onwards. By 2022, the MVA reached around 27.36 billion USD, indicating strong growth particularly in the latter years.

Revenue

Revenue followed a consistent upward trajectory over the years. Beginning at about 153.14 billion USD in 2017, it increased steadily each year, reaching nearly 238.59 billion USD by 2022. This trend highlights continued sales growth, with year-over-year increases each period without interruption.

MVA Margin

The MVA margin, representing the ratio of Market Value Added to Revenue, exhibited relatively stable percentages from 2017 to 2019, ranging between 5.91% and 6.71%. However, from 2020 onward, the margin increased sharply, peaking at 11.47% in 2022. This suggests enhanced value creation relative to revenue in recent years, reflecting improved market valuation efficiency or investor confidence.