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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Coca-Cola Co. pages available for free this week:
- Statement of Comprehensive Income
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Operating Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
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MVA
Coca-Cola Co., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Fair value of debt. See details »
2 Invested capital. See details »
The period under review demonstrates fluctuations in market valuation and invested capital, resulting in corresponding changes in market value added. An initial decline in market value is followed by a recovery and subsequent growth, while invested capital exhibits a more consistent upward trajectory. The market value added mirrors these trends, showing an initial decrease, stabilization, and then substantial gains.
- Market Value
- The market value experienced a decrease from US$312,604 million in 2021 to US$293,887 million in 2022. A modest recovery was observed in 2023, reaching US$299,446 million. More significant growth occurred in 2024, with the market value increasing to US$339,772 million, and continued into 2025, reaching US$383,721 million. This indicates increasing investor confidence or positive market perception over the latter part of the period.
- Invested Capital
- Invested capital remained relatively stable between 2021 and 2022, fluctuating between US$79,959 million and US$80,311 million. A gradual increase is then apparent, rising to US$83,542 million in 2023, US$86,857 million in 2024, and US$92,902 million in 2025. This suggests a consistent reinvestment of capital into the business.
- Market Value Added (MVA)
- Market value added followed the trend of the market value, decreasing from US$232,293 million in 2021 to US$213,928 million in 2022. It remained relatively flat in 2023 at US$215,904 million before increasing substantially to US$252,915 million in 2024 and further to US$290,819 million in 2025. The increasing MVA suggests that the company is generating value for its investors beyond the capital they have invested, particularly in the later years of the period.
The divergence between the increasing invested capital and the fluctuating, but ultimately rising, MVA suggests improving capital efficiency. The company appears to be generating more value from each dollar of invested capital in 2024 and 2025 compared to earlier years.
MVA Spread Ratio
Coca-Cola Co., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 MVA. See details »
2 Invested capital. See details »
3 2025 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited fluctuations over the five-year period, while Invested Capital demonstrated a consistent upward trajectory. Consequently, the MVA spread ratio, which reflects MVA relative to Invested Capital, displayed a dynamic pattern. An initial decline was followed by a recovery and subsequent increase.
- Market Value Added (MVA)
- The MVA decreased from US$232,293 million in 2021 to US$213,928 million in 2022, representing a decline of approximately 8.1%. A modest recovery was observed in 2023, with MVA reaching US$215,904 million. Subsequent years saw more substantial growth, with MVA increasing to US$252,915 million in 2024 and further to US$290,819 million in 2025. This indicates a strengthening of shareholder value creation in the later part of the period.
- Invested Capital
- Invested Capital experienced a slight decrease from US$80,311 million in 2021 to US$79,959 million in 2022. However, from 2022 onwards, a clear upward trend is evident, rising to US$83,542 million in 2023, US$86,857 million in 2024, and US$92,902 million in 2025. This suggests a consistent reinvestment in the business.
- MVA Spread Ratio
- The MVA spread ratio began at 289.24% in 2021 and decreased to 267.55% in 2022, mirroring the decline in MVA. A further decrease to 258.44% occurred in 2023. The ratio then rebounded significantly, reaching 291.19% in 2024 and 313.04% in 2025. This increase suggests that the growth in MVA outpaced the growth in Invested Capital in the latter years, indicating improved efficiency in value creation relative to capital employed.
Overall, the period demonstrates an initial period of value contraction followed by a recovery and strengthening of value creation. The increasing MVA spread ratio in the final two years suggests improved returns on invested capital and enhanced shareholder value generation.
MVA Margin
Coca-Cola Co., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Net operating revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 MVA. See details »
2 2025 Calculation
MVA margin = 100 × MVA ÷ Net operating revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited fluctuations over the five-year period, while Net Operating Revenues demonstrated consistent growth. The MVA margin, calculated as MVA relative to Net Operating Revenues, reveals the efficiency with which the company translates revenue into shareholder value. A detailed examination of these metrics is presented below.
- Market Value Added (MVA)
- The MVA decreased from US$232,293 million in 2021 to US$213,928 million in 2022, representing a decline. A slight recovery was observed in 2023, with MVA reaching US$215,904 million. Subsequently, MVA increased significantly to US$252,915 million in 2024 and continued its upward trajectory, reaching US$290,819 million in 2025. This indicates a strengthening of shareholder value creation in the later years of the observed period.
- Net Operating Revenues
- Net Operating Revenues experienced a steady increase throughout the period. From US$38,655 million in 2021, revenues grew to US$43,004 million in 2022, US$45,754 million in 2023, US$47,061 million in 2024, and finally reached US$47,941 million in 2025. This consistent growth suggests a positive trend in the company’s core business performance.
- MVA Margin
- The MVA margin initially decreased from 600.94% in 2021 to 497.46% in 2022, coinciding with the decline in MVA. The margin continued to decrease, reaching 471.88% in 2023. A reversal in this trend was observed in 2024, with the margin increasing to 537.42%. The most substantial increase occurred in 2025, with the MVA margin reaching 606.62%, surpassing the 2021 level. This suggests that, despite initial fluctuations, the company became increasingly efficient at generating value from its revenue in the latter part of the period. The strong correlation between MVA and MVA margin indicates that changes in MVA directly influence the margin.
In summary, while MVA experienced initial volatility, it demonstrated a strong recovery and growth trend towards the end of the period. This growth was supported by consistent increases in Net Operating Revenues and a corresponding improvement in the MVA margin, indicating enhanced value creation for shareholders.