Microsoft Excel LibreOffice Calc

Market Value Added (MVA)

Difficulty: Advanced

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

USD $ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Fair value of debt1 48,374  46,250  44,437  42,541  37,253 
PV of operating lease payments2 510  645  679  919  997 
Market value of common equity 187,871  179,381  191,191  183,601  167,732 
Equity attributable to noncontrolling interests 1,905  158  210  241  267 
Less: Marketable securities 7,547  6,115  8,567  8,245  4,969 
Market (fair) value of Coca-Cola 231,112  220,319  227,950  219,056  201,280 
Less: Invested capital3 72,598  79,169  77,538  76,173  75,127 
MVA 158,515  141,150  150,412  142,884  126,153 

Based on: 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-25), 10-K (filing date: 2014-02-27).

1 Fair value of debt. See Details »

2 Present value of operating lease payments. See Details »

3 Invested capital. See Details »

Item Description The company
MVA Coca-Cola's market (fair) value less invested capital. Coca-Cola Co.'s MVA declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

MVA Spread

Coca-Cola Co., MVA spread calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Market value added (MVA)1 158,515  141,150  150,412  142,884  126,153 
Invested capital2 72,598  79,169  77,538  76,173  75,127 
Ratio
MVA spread3 218.35% 178.29% 193.98% 187.58% 167.92%

Based on: 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-25), 10-K (filing date: 2014-02-27).

2017 Calculations

1 MVA. See Details »

2 Invested capital. See Details »

3 MVA spread = 100 × MVA ÷ Invested capital
= 100 × 158,515 ÷ 72,598 = 218.35%

Ratio Description The company
MVA spread 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 deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.

MVA Margin

Coca-Cola Co., MVA margin calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Market value added (MVA)1 158,515  141,150  150,412  142,884  126,153 
Net operating revenues 35,410  41,863  44,294  45,998  46,854 
Ratio
MVA margin2 447.65% 337.17% 339.58% 310.63% 269.25%

Based on: 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-25), 10-K (filing date: 2014-02-27).

2017 Calculations

1 MVA. See Details »

2 MVA margin = 100 × MVA ÷ Net operating revenues
= 100 × 158,515 ÷ 35,410 = 447.65%

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 deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.