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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- Income Statement
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Price to Earnings (P/E) since 2005
- Aggregate Accruals
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MVA
Boeing Co., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
The financial data over the five-year period reveals notable trends in market value, invested capital, and market value added for the company.
- Market (fair) value of Boeing
- The market value exhibits a gradual increase from 170,409 million US dollars in 2020 to 178,531 million US dollars in 2023, showing steady appreciation. However, in 2024, there is a slight decrease to 172,806 million US dollars, indicating a minor decline in market valuation after peaking in 2023.
- Invested capital
- Invested capital shows some volatility across the years. It increased marginally from 47,630 million US dollars in 2020 to 50,833 million US dollars in 2022. In 2023, there is a noticeable reduction to 44,883 million US dollars, followed by a rebound to 50,250 million US dollars in 2024. This fluctuation may indicate changes in asset base investment or capital structure adjustments.
- Market value added (MVA)
- The MVA exhibits an upward trend from 122,779 million US dollars in 2020 to a peak of 133,648 million US dollars in 2023, reflecting growing market perception of value beyond invested capital. Nevertheless, in 2024, MVA decreases to 122,556 million US dollars, paralleling the decline in market value and suggesting a diminished premium over invested capital compared to previous years.
Overall, the patterns suggest a period of growth and positive market valuation through 2023, followed by modest retrenchment in 2024. The fluctuations in invested capital could imply strategic capital management or operational changes influencing the asset base. The close relationship between market value and MVA trends indicates that market expectations of future earnings or performance drive much of the value fluctuations observed.
MVA Spread Ratio
Boeing Co., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added shows an overall upward trend from 2020 through 2023, increasing from 122,779 million US dollars in 2020 to a peak of 133,648 million US dollars in 2023. However, there is a visible decline in 2024, with the value dropping to 122,556 million US dollars. This indicates that after several years of growth in market value relative to invested capital, there is a reduction in the value added in the last year recorded.
- Invested Capital
- Invested capital exhibits fluctuations over the period. It increases from 47,630 million US dollars in 2020 to reach 50,833 million US dollars in 2022. However, there is a notable decrease in 2023 to 44,883 million US dollars, followed by a recovery to 50,250 million US dollars in 2024. This pattern suggests variable capital deployment strategies or capital adjustments during these years.
- MVA Spread Ratio
- The MVA spread ratio expresses a similar fluctuation pattern, remaining relatively stable around 250-258% from 2020 to 2022. There is a marked increase in 2023 to 297.77%, which represents a significant enhancement in the market value relative to invested capital during that year. In 2024, the ratio decreases sharply to 243.89%, reflecting reduced efficiency or market perception of value generation relative to invested capital.
- Overall Analysis
- The data indicates strong performance in market value added through 2023, accompanied by corresponding changes in invested capital and MVA spread ratio. The peak in 2023 suggests optimal market valuation relative to capital invested. However, the decline in both MVA and the MVA spread ratio in 2024 implies a potential challenge in maintaining prior growth levels or a shift in market conditions affecting valuation. The fluctuations in invested capital further highlight adjustments in resource allocation over the periods analyzed.
MVA Margin
Boeing Co., MVA margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added shows a general increase from 2020 to 2023, rising from approximately $122.8 billion in 2020 to a peak of about $133.6 billion in 2023. However, in 2024, there is a noticeable decline to around $122.6 billion, bringing the value back closer to the 2020 level. This suggests initial growth in market value over the first four years, followed by a setback in the most recent year.
- Revenues
- Revenues exhibit a consistent upward trend from 2020 through 2023, starting at approximately $58.2 billion and increasing each year to reach about $77.8 billion in 2023. In 2024, revenues drop significantly to approximately $66.5 billion, indicating a substantial reduction compared to the previous year. This pattern mirrors the trend observed in MVA, with steady growth followed by a marked decrease.
- MVA Margin
- The MVA margin shows a declining trend over the period analyzed. Starting at 211.11% in 2020, it decreases each year until 2023, where it reaches 171.8%. In 2024, there is a slight recovery to 184.25%, yet the margin remains below the levels seen at the beginning of the period. This decline in margin, despite initial increases in revenues and MVA, may suggest reduced efficiency or profitability relative to market value added over time.