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
Carnival Corp. & plc, MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2023-11-30), 10-K (reporting date: 2022-11-30), 10-K (reporting date: 2021-11-30), 10-K (reporting date: 2020-11-30), 10-K (reporting date: 2019-11-30), 10-K (reporting date: 2018-11-30).
1 Fair value of debt. See details »
2 Invested capital. See details »
The financial trajectory from 2018 to 2023 is characterized by significant volatility in market valuation and fluctuations in invested capital, resulting in an inconsistent Market Value Added (MVA) profile. While the market value ended the period near its initial 2018 levels, the intervening years show two distinct periods of severe contraction in shareholder value creation.
- Market Value Trends
- The fair market value exhibited a non-linear progression, beginning at 51,417 million USD in 2018 and concluding at 51,725 million USD in 2023. A peak was observed in 2021 at 56,029 million USD, which was followed by a sharp decline to 44,313 million USD in 2022 before a subsequent recovery in the final year.
- Invested Capital Analysis
- Invested capital increased from 35,074 million USD in 2018 to a peak of 49,017 million USD in 2020. Following this peak, a consistent downward trend is observed, with invested capital decreasing annually to reach 39,428 million USD by 2023, suggesting a reduction in the total capital employed in the business.
- Market Value Added (MVA) Performance
- The MVA experienced extreme variance, acting as a primary indicator of market sentiment. A substantial value creation of 16,344 million USD in 2018 eroded sharply to 974 million USD in 2020 and reached a critical low of 170 million USD in 2022. These troughs indicate periods where the market valuation barely exceeded the invested capital. The recovery to 12,297 million USD in 2023 suggests a restoration of investor confidence and perceived future profitability, although the value remains below the 2018 baseline.
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MVA Spread Ratio
Carnival Corp. & plc, MVA spread ratio calculation, comparison to benchmarks
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | Nov 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 12,297) | 170) | 9,512) | 974) | 8,612) | 16,344) | |
| Invested capital2 | 39,428) | 44,143) | 46,517) | 49,017) | 38,330) | 35,074) | |
| Performance Ratio | |||||||
| MVA spread ratio3 | 31.19% | 0.38% | 20.45% | 1.99% | 22.47% | 46.60% | |
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Airbnb Inc. | 1,551.16% | 1,119.95% | 1,602.12% | — | — | — | |
| Booking Holdings Inc. | 1,200.63% | 645.29% | 637.88% | — | — | — | |
| Chipotle Mexican Grill Inc. | 1,142.84% | 775.57% | 750.94% | — | — | — | |
| DoorDash, Inc. | 762.68% | 272.76% | 975.30% | — | — | — | |
| McDonald’s Corp. | 430.22% | 426.12% | 393.79% | — | — | — | |
| Starbucks Corp. | 540.56% | 553.87% | 552.49% | 492.67% | — | — | |
Based on: 10-K (reporting date: 2023-11-30), 10-K (reporting date: 2022-11-30), 10-K (reporting date: 2021-11-30), 10-K (reporting date: 2020-11-30), 10-K (reporting date: 2019-11-30), 10-K (reporting date: 2018-11-30).
1 MVA. See details »
2 Invested capital. See details »
3 2023 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 12,297 ÷ 39,428 = 31.19%
4 Click competitor name to see calculations.
The financial performance from 2018 to 2023 is characterized by extreme volatility in market valuation and capital allocation. Market Value Added (MVA) and the corresponding spread ratio experienced severe contractions punctuated by brief recovery periods, indicating a highly unstable relationship between the capital invested and the value perceived by the market.
- Market Value Added (MVA)
- A volatile trajectory is observed, beginning with a high of US$ 16,344 million in 2018 and declining sharply to US$ 974 million by 2020. Although a significant recovery occurred in 2021, reaching US$ 9,512 million, the value collapsed again in 2022 to a period low of US$ 170 million. By November 30, 2023, a strong rebound was recorded, with MVA rising to US$ 12,297 million.
- Invested Capital
- Invested capital showed a distinct upward trend during the initial phase, increasing from US$ 35,074 million in 2018 to a peak of US$ 49,017 million in 2020. Following this peak, a consistent downward trend was observed over the subsequent three years, with the capital base contracting to US$ 39,428 million by 2023. This suggests a period of capital expansion followed by a strategic or forced reduction in the invested base.
- MVA Spread Ratio
- The MVA spread ratio mirrors the instability of the absolute MVA, starting at 46.60% in 2018 and falling precipitously to 1.99% in 2020. The ratio exhibited a cyclical pattern, recovering to 20.45% in 2021 before nearly vanishing to 0.38% in 2022. The final period ending in 2023 shows a significant recovery to 31.19%, suggesting a renewed market confidence in the entity's ability to generate value relative to its invested capital.
The inverse relationship observed between 2018 and 2020—where invested capital increased while MVA and the spread ratio declined—indicates a period of value destruction. However, the 2023 results demonstrate a recovery in efficiency, as MVA increased substantially while invested capital continued to decrease, resulting in a strengthened spread ratio.
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MVA Margin
Carnival Corp. & plc, MVA margin calculation, comparison to benchmarks
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | Nov 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 12,297) | 170) | 9,512) | 974) | 8,612) | 16,344) | |
| Revenues | 21,593) | 12,168) | 1,908) | 5,595) | 20,825) | 18,881) | |
| Performance Ratio | |||||||
| MVA margin2 | 56.95% | 1.40% | 498.53% | 17.42% | 41.35% | 86.56% | |
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Airbnb Inc. | 902.27% | 889.82% | 1,448.64% | — | — | — | |
| Booking Holdings Inc. | 641.48% | 515.10% | 873.40% | — | — | — | |
| Chipotle Mexican Grill Inc. | 693.54% | 483.21% | 544.85% | — | — | — | |
| DoorDash, Inc. | 462.55% | 220.43% | 634.30% | — | — | — | |
| McDonald’s Corp. | 844.34% | 834.91% | 808.92% | — | — | — | |
| Starbucks Corp. | 334.25% | 352.88% | 450.20% | 480.36% | — | — | |
Based on: 10-K (reporting date: 2023-11-30), 10-K (reporting date: 2022-11-30), 10-K (reporting date: 2021-11-30), 10-K (reporting date: 2020-11-30), 10-K (reporting date: 2019-11-30), 10-K (reporting date: 2018-11-30).
1 MVA. See details »
2 2023 Calculation
MVA margin = 100 × MVA ÷ Revenues
= 100 × 12,297 ÷ 21,593 = 56.95%
3 Click competitor name to see calculations.
The financial performance from 2018 to 2023 is characterized by extreme volatility in both market value creation and operational revenue, reflecting a period of severe contraction followed by a substantial recovery.
- Market Value Added (MVA) Trends
- A significant downward trajectory was observed between 2018 and 2020, with MVA falling from 16,344 million US$ to 974 million US$. While a temporary recovery occurred in 2021, the value collapsed again in 2022 to a low of 170 million US$. By November 30, 2023, a strong rebound was recorded, with MVA rising to 12,297 million US$, indicating a restoration of investor confidence in the entity's long-term value creation.
- Revenue Trajectory
- Revenues exhibited a sharp decline starting in 2020, plummeting from 20,825 million US$ in 2019 to a nadir of 1,908 million US$ in 2021. This period of operational contraction was followed by a consistent recovery phase, with revenues increasing to 12,168 million US$ in 2022 and ultimately reaching 21,593 million US$ by 2023, surpassing pre-2020 levels.
- MVA Margin Analysis
- The MVA margin demonstrated erratic fluctuations throughout the analyzed period. A steady decline was noted from 86.56% in 2018 to 17.42% in 2020. An anomalous spike to 498.53% occurred in 2021, which is attributable to the extreme contraction of the revenue denominator rather than an increase in operational efficiency. This was followed by a sharp correction to 1.40% in 2022, before stabilizing at 56.95% in 2023 as revenues and market value realigned.
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