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
Caterpillar Inc., MVA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2019-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Caterpillar Inc. market (fair) value less invested capital. | Caterpillar Inc. MVA increased from 2021 to 2022 and from 2022 to 2023. |
MVA Spread Ratio
Caterpillar Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 137,137) | 106,454) | 91,643) | 95,882) | 59,364) | |
| Invested capital2 | 57,458) | 54,840) | 55,613) | 54,190) | 54,921) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 238.67% | 194.12% | 164.79% | 176.94% | 108.09% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Boeing Co. | 297.77% | 250.89% | 256.38% | 257.78% | 489.80% | |
| Cummins Inc. | 110.97% | 93.30% | 111.67% | 139.01% | 87.16% | |
| Eaton Corp. plc | 289.43% | 149.39% | 132.30% | 124.83% | 66.62% | |
| General Electric Co. | 243.60% | 84.87% | 110.77% | 64.66% | 58.28% | |
| Honeywell International Inc. | 211.09% | 224.23% | 209.78% | 236.48% | 239.06% | |
| Lockheed Martin Corp. | 352.46% | 399.68% | 319.28% | 284.59% | 441.62% | |
| RTX Corp. | 48.99% | 54.30% | 57.80% | 31.41% | 82.79% | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2023 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 137,137 ÷ 57,458 = 238.67%
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. | Caterpillar Inc. MVA spread ratio improved from 2021 to 2022 and from 2022 to 2023. |
MVA Margin
Caterpillar Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 137,137) | 106,454) | 91,643) | 95,882) | 59,364) | |
| Sales of Machinery, Energy & Transportation | 63,869) | 56,574) | 48,188) | 39,022) | 50,755) | |
| Performance Ratio | ||||||
| MVA margin2 | 214.72% | 188.17% | 190.18% | 245.71% | 116.96% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Boeing Co. | 171.80% | 191.47% | 203.39% | 211.11% | 227.39% | |
| Cummins Inc. | 66.99% | 74.92% | 80.85% | 121.56% | 55.86% | |
| Eaton Corp. plc | 392.00% | 221.57% | 198.58% | 191.64% | 91.84% | |
| General Electric Co. | 189.55% | 76.94% | 111.81% | 103.34% | 86.63% | |
| Honeywell International Inc. | 278.88% | 295.90% | 293.22% | 350.74% | 278.15% | |
| Lockheed Martin Corp. | 143.06% | 161.14% | 136.30% | 122.08% | 189.58% | |
| RTX Corp. | 79.64% | 91.75% | 102.95% | 64.17% | 111.10% | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 MVA. See details »
2 2023 Calculation
MVA margin = 100 × MVA ÷ Sales of Machinery, Energy & Transportation
= 100 × 137,137 ÷ 63,869 = 214.72%
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. | Caterpillar Inc. MVA margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |