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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- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Geographic Areas
- Enterprise Value (EV)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
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MVA
Coca-Cola Co., 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 Coca-Cola
- The market value shows an overall upward trend from 2020 to 2024, increasing from $260,479 million to $339,772 million. After a notable rise between 2020 and 2021, the value experienced a slight decline in 2022, followed by a moderate recovery in 2023, and a significant increase in 2024. This pattern indicates fluctuating investor confidence with a strong recovery and growth in the most recent year.
- Invested capital
- Invested capital increased gradually from $75,674 million in 2020 to $86,857 million in 2024. The growth is steady but moderate, with incremental increases each year. This steady growth in invested capital suggests ongoing investment in the company’s assets or operations without abrupt changes.
- Market value added (MVA)
- Market value added, calculated as the difference between market value and invested capital, follows a similar pattern to market value. It rose significantly from $184,805 million in 2020 to a peak of $232,293 million in 2021. Thereafter, MVA declined in 2022 but stabilized in 2023 before resuming strong growth in 2024, reaching $252,915 million. This pattern indicates fluctuations in the market's perceived value creation above the invested capital, but with a positive overall trend indicating increasing market value over invested capital.
MVA Spread Ratio
Coca-Cola Co., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International 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 shows a general upward trend over the five-year period. Starting from US$184,805 million in 2020, it increased significantly to US$232,293 million in 2021. There was a slight decline to US$213,928 million in 2022, followed by a marginal increase to US$215,904 million in 2023. The figure reached its highest point at US$252,915 million in 2024. This pattern suggests overall growth in market value, despite some fluctuations between 2021 and 2023.
- Invested Capital
- Invested Capital shows a gradual increase each year. From US$75,674 million in 2020, it rose steadily to US$80,311 million in 2021 and remained relatively stable in 2022 at US$79,959 million. It then increased to US$83,542 million in 2023 and further to US$86,857 million in 2024. The trend indicates ongoing investment in capital with consistent growth over the period analyzed.
- MVA Spread Ratio
- The MVA spread ratio experienced growth throughout the period, starting at 244.21% in 2020 and rising sharply to 289.24% in 2021. There was a moderate decrease to 267.55% in 2022 and a further decline to 258.44% in 2023. However, the ratio increased again to 291.19% in 2024, surpassing all previous years. This implies that the added market value relative to invested capital improved overall, with short-term declines offset by strong performance in 2021 and 2024.
- Overall Analysis
- The data reflects a generally positive financial trajectory. Market value and invested capital both increased over the five years, albeit with some minor fluctuations in market value from 2021 to 2023. The MVA spread ratio corroborates this trend, showing strong value generation relative to invested capital, particularly in the first and last years of the period. These indicators collectively suggest effective capital utilization and strong market valuation growth despite some interim volatility.
MVA Margin
Coca-Cola Co., MVA margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| 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: 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 ÷ Net operating revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market value added (MVA)
- The market value added demonstrates a general upward trend over the five-year period. Starting at 184,805 million US$ in 2020, it increased substantially to 232,293 million US$ in 2021. After a slight decline in 2022 to 213,928 million US$, the value remained relatively stable in 2023 at 215,904 million US$, before rising again significantly in 2024 to reach 252,915 million US$. This suggests an overall positive market perception and value creation over the period, notwithstanding some fluctuations.
- Net operating revenues
- Net operating revenues have consistently increased each year from 33,014 million US$ in 2020 to 47,061 million US$ in 2024. This steady growth, averaging approximately 11.7% per year, indicates continuous expansion in the company's core operations and successful revenue generation over the period analyzed.
- MVA margin
- The MVA margin exhibits variability throughout the period. It peaked at 600.94% in 2021 after a significant increase from 559.78% in 2020. Subsequently, it declined to 497.46% in 2022 and further decreased to 471.88% in 2023. In 2024, the MVA margin rebounded to 537.42%. The fluctuations in the MVA margin suggest changes in market value added relative to net operating revenues, reflecting varying degrees of market valuation efficiency and profitability in relation to the company's revenue generation over time.