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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Bristol-Myers Squibb Co. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Selected Financial Data since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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MVA
Bristol-Myers Squibb 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 annual financial data of the company indicates notable trends in market value, invested capital, and market value added over the five-year period from 2020 to 2024.
- Market (fair) value
- The market value remained relatively stable from 2020 to 2022, fluctuating slightly between approximately $187 billion and $192 billion. However, there was a significant decline in 2023, dropping to about $135.6 billion, representing a decrease of nearly 28% compared to the previous year. In 2024, the market value exhibited a partial recovery, increasing to approximately $160 billion, though it remained below the levels observed in the early years of the period.
- Invested capital
- Invested capital showed a continuous declining trend throughout the timeframe. Starting at roughly $90.1 billion in 2020, it decreased steadily each year to around $62.7 billion in 2024. This represents an overall reduction of approximately 30%, suggesting a possible divestiture of assets, efficiency measures, or shifts in capital allocation strategies.
- Market Value Added (MVA)
- The Market Value Added increased from $99 billion in 2020 to a peak of about $115.4 billion in 2022, indicating enhanced value creation beyond the invested capital. However, in 2023, MVA sharply declined to roughly $68 billion, mirroring the drop in market value. By 2024, MVA partially rebounded to approximately $97.3 billion, though still remaining below its prior peak. This fluctuation suggests volatility in the company's ability to generate market value exceeding the capital invested during this period.
In summary, while invested capital consistently decreased across the five years, the market value and market value added experienced volatility with a marked dip in 2023 and a partial recovery in 2024. These patterns may indicate changes in market perception, operational adjustments, or external factors impacting the company's valuation and capital base.
MVA Spread Ratio
Bristol-Myers Squibb Co., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
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 demonstrated an overall fluctuating trend over the five-year period. Starting at 99,007 million US dollars in 2020, MVA increased steadily to reach a peak of 115,404 million US dollars in 2022. Subsequently, there was a significant decline in 2023 to 67,993 million US dollars, followed by a partial recovery to 97,292 million US dollars in 2024. This pattern indicates volatility in market perception or value creation relative to invested capital during these years.
- Invested Capital
- The invested capital showed a consistent downward trend throughout the period analyzed. It decreased from 90,149 million US dollars in 2020 to 62,654 million US dollars in 2024. This decline suggests a systematic reduction in the capital base employed by the company, which could be the result of asset divestitures, improved capital efficiency, or restructuring efforts aimed at streamlining investments.
- MVA Spread Ratio
- The MVA spread ratio, which reflects the relative return spread between the market value and the invested capital, exhibited considerable variation during the period. Beginning at 109.83% in 2020, it improved significantly to reach a peak of 160.91% in 2022. There was a notable decrease to 100.64% in 2023, coinciding with the downturn in MVA, before rebounding strongly to 155.28% in 2024. This ratio trend mirrors the fluctuations observed in market value added and suggests that the company’s ability to generate value beyond invested capital experienced periods of both strength and weakness.
- Summary Insights
- Overall, the data reflects a scenario where, despite a steady reduction in invested capital, the company’s market value added and MVA spread ratio have shown volatility, with strong growth phases punctuated by a significant dip in 2023. The rebound in 2024 indicates a recovery in value creation efficiency, potentially signaling improved market confidence or operational performance following the prior year’s decline. The persistent decrease in invested capital may indicate strategic shifts towards more efficient capital allocation or asset optimization efforts.
MVA Margin
Bristol-Myers Squibb 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 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
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.
The financial data reveals several notable trends across the five-year period under review. Market value added (MVA), a measure of company value creation, initially increased from 99,007 million US dollars at the end of 2020 to a peak of 115,404 million US dollars in 2022. However, a sharp decline followed in 2023, dropping to 67,993 million US dollars, before partially recovering to 97,292 million US dollars by the end of 2024.
Revenues exhibited moderate variability during the same period. Starting at 42,518 million US dollars in 2020, revenues increased steadily through 2021 and 2022, reaching 46,385 million and 46,159 million US dollars respectively. A slight dip occurred in 2023, with revenues decreasing to 45,006 million US dollars, but they rebounded to the highest level in the data set, 48,300 million US dollars, in 2024.
The MVA margin, which indicates the efficiency in value creation relative to revenues, follows a similar trajectory to MVA. The margin grew from 232.86% in 2020 to a peak of 250.01% in 2022. Following this peak, a significant decline to 151.08% was observed in 2023, suggesting diminished value creation efficiency during that year. Nonetheless, there was a recovery to 201.43% in 2024, although this remains below the earlier peak levels.
- Market Value Added (MVA)
- Demonstrated growth from 2020 to 2022, peaking in 2022 before a substantial decline in 2023 and a partial recovery in 2024.
- Revenues
- Showed steady but moderate growth over the entire period, with a slight dip in 2023 followed by a rebound in 2024 to the highest recorded value.
- MVA Margin
- Correlated closely with MVA trends, peaking in 2022, sharply decreasing in 2023, and then recovering in 2024, albeit not to previous peak levels.
Overall, the data indicates that the company experienced solid revenue growth accompanied by initial increases in value creation as indicated by MVA and MVA margin, followed by a notable setback in 2023. The partial recovery observed in 2024 suggests some restoration of value creation capability, though not yet to peak levels seen in 2022. The divergence between revenue growth and declines in MVA and its margin during 2023 could be indicative of market valuation adjustments or internal challenges affecting market perception and value efficiency.