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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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Analysis of Liquidity Ratios
- Analysis of Reportable Segments
- Present Value of Free Cash Flow to Equity (FCFE)
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
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MVA
Cigna Group, 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 »
- Market (fair) value of Cigna
- The market value exhibited fluctuations over the observed period. It declined slightly from 113,123 million US$ in 2020 to 110,398 million US$ in 2021. Subsequently, it increased to a peak of 128,223 million US$ in 2023, before declining again to 112,469 million US$ in 2024. Overall, this pattern indicates periods of growth followed by a recent contraction in market valuation.
- Invested capital
- Invested capital demonstrated a consistent downward trend throughout the years. Starting from 93,748 million US$ in 2020, it steadily decreased each year, reaching 81,638 million US$ by 2024. This reduction in invested capital may signal a strategic decrease in the company's asset base or capital commitments.
- Market value added (MVA)
- MVA showed notable growth from 19,375 million US$ in 2020 to 42,446 million US$ in 2023, reflecting an increasing market valuation relative to invested capital and potentially enhanced value creation. However, in 2024, MVA dropped to 30,831 million US$, indicating a decrease in market value added despite the prior growth trend, possibly due to the decrease in market value and invested capital.
MVA Spread Ratio
Cigna Group, MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group 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 exhibits an overall increasing trend from 2020 through 2023, rising from 19,375 million USD at the end of 2020 to a peak of 42,446 million USD at the end of 2023. However, in 2024, there is a notable decline in MVA to 30,831 million USD, which, while lower than the previous year, remains significantly higher than the values recorded in 2020 and 2021.
- Invested Capital
- The invested capital demonstrates a consistent downward trend over the five-year period. Starting at 93,748 million USD in 2020, it gradually decreases each year, reaching 81,638 million USD by the end of 2024. This reduction suggests a gradual contraction in the invested resources within the company over the observed period.
- MVA Spread Ratio
- The MVA spread ratio, which reflects the margin by which market value added exceeds the invested capital, shows a considerable upward trend from 2020 through 2023. Beginning at 20.67% in 2020, it increases moderately to 21.75% in 2021, then rises sharply to 36.39% in 2022, peaking at 49.48% in 2023. In 2024, the ratio decreases to 37.77% but continues to indicate a substantially improved spread relative to the earlier years.
- Overall Analysis
- The data indicates strong value creation improvement over the period of 2020 to 2023, as evidenced by rising market value added and increasingly favorable MVA spread ratios, despite a declining invested capital base. The notable drop in MVA and MVA spread ratio in 2024 signals potential challenges or market adjustments, although the figures remain higher than those seen in the early years under review. The contraction in invested capital may have played a role in enhancing efficiency or returns on capital, but the decline in 2024 suggests a need for further analysis to understand the causes behind this development.
MVA Margin
Cigna Group, 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 from external customers | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group 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 from external customers
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added shows a general upward trend from 2020 to 2023, increasing from 19,375 million US dollars to a peak of 42,446 million US dollars in 2023. However, in 2024, there is a notable decline to 30,831 million US dollars, indicating a reduction in the market value created compared to the previous year, though still higher than the values observed in 2020 and 2021.
- Revenues from External Customers
- Revenues from external customers display a consistent growth pattern throughout the period observed. Starting at 159,157 million US dollars in 2020, revenues increased steadily each year, reaching 246,148 million US dollars by 2024. This reflects a strong expansion in the company’s sales over the five-year span.
- MVA Margin
- The MVA margin, expressed as a percentage, generally aligns with the trend seen in Market Value Added. It decreased slightly from 12.17% in 2020 to 11.43% in 2021, then rose significantly to 21.87% in 2023, indicating an improvement in value creation relative to revenue. Nevertheless, there is a sharp decline to 12.53% in 2024, paralleling the reduction in Market Value Added and suggesting a decrease in efficiency or valuation relative to revenue during the last year.
- Overall Insights
- The analyzed data reveals a pattern of revenue growth accompanied by increasing market value added until 2023, followed by a correction in 2024. While revenues continued to grow strongly, the dip in both Market Value Added and MVA margin in 2024 may point to challenges in sustaining value creation relative to the company’s increased sales or market expectations during that year.