Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Coca-Cola Co. (NYSE:KO)

Market Value Added (MVA)

Advanced level

Market value added (MVA) is the difference between a firms’s 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

Coca-Cola Co., MVA calculation

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Fair value of debt1 43,719  43,632  48,374  46,250  44,437 
Operating lease liability 1,392  467  510  645  679 
Market value of common equity 251,625  196,067  187,871  179,381  191,191 
Equity attributable to noncontrolling interests 2,117  2,077  1,905  158  210 
Less: Marketable securities 5,506  7,051  7,547  6,115  8,567 
Market (fair) value of Coca-Cola 293,347  235,192  231,112  220,319  227,950 
Less: Invested capital2 73,687  68,598  72,598  79,169  77,538 
MVA 219,660  166,594  158,515  141,150  150,412 

Based on: 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-25).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA Coca-Cola Co.’s market (fair) value less invested capital. Coca-Cola Co.’s MVA increased from 2017 to 2018 and from 2018 to 2019.

MVA Spread Ratio

Coca-Cola Co., MVA spread ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Market value added (MVA)1 219,660  166,594  158,515  141,150  150,412 
Invested capital2 73,687  68,598  72,598  79,169  77,538 
Performance Ratio
MVA spread ratio3 298.10% 242.85% 218.35% 178.29% 193.98%
Benchmarks
MVA Spread Ratio, Competitors4
PepsiCo Inc. 302.36% 224.70% 235.44% 212.17% 189.13%

Based on: 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-25).

1 MVA. See details »

2 Invested capital. See details »

3 2019 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 219,660 ÷ 73,687 = 298.10%

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. Coca-Cola Co.’s MVA spread ratio improved from 2017 to 2018 and from 2018 to 2019.

MVA Margin

Coca-Cola Co., MVA margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Market value added (MVA)1 219,660  166,594  158,515  141,150  150,412 
Net operating revenues 37,266  31,856  35,410  41,863  44,294 
Performance Ratio
MVA margin2 589.44% 522.96% 447.65% 337.17% 339.58%
Benchmarks
MVA Margin, Competitors3
PepsiCo Inc. 267.35% 210.07% 213.44% 200.36% 180.47%

Based on: 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-25).

1 MVA. See details »

2 2019 Calculation
MVA margin = 100 × MVA ÷ Net operating revenues
= 100 × 219,660 ÷ 37,266 = 589.44%

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. Coca-Cola Co.’s MVA margin ratio improved from 2017 to 2018 and from 2018 to 2019.