Market Value Added (MVA)
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
Colgate-Palmolive Co., MVA calculation
US$ in millions
Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-18).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Colgate-Palmolive Co.’s market (fair) value less invested capital. | Colgate-Palmolive Co.’s MVA decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level. |
MVA Spread Ratio
Colgate-Palmolive Co., MVA spread ratio calculation, comparison to benchmarks
| 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 | 60,724 | 53,038 | 58,389 | 61,751 | 56,371 | |
| Invested capital2 | 13,859 | 11,791 | 11,744 | 11,692 | 11,343 | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 438.16% | 449.81% | 497.18% | 528.15% | 496.98% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Estée Lauder Cos. Inc. | 574.67% | 432.54% | 388.91% | 466.86% | 450.03% | |
| Kimberly-Clark Corp. | 415.42% | 322.89% | 302.19% | 347.14% | 363.72% | |
| Nike Inc. | 904.20% | 751.49% | 549.44% | 635.80% | 708.29% | |
Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-18).
1 MVA. See details »
2 Invested capital. See details »
3 2019 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 60,724 ÷ 13,859 = 438.16%
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. | Colgate-Palmolive Co.’s MVA spread ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
MVA Margin
Colgate-Palmolive Co., MVA margin calculation, comparison to benchmarks
| 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 | 60,724 | 53,038 | 58,389 | 61,751 | 56,371 | |
| Net sales | 15,693 | 15,544 | 15,454 | 15,195 | 16,034 | |
| Performance Ratio | ||||||
| MVA margin2 | 386.95% | 341.21% | 377.82% | 406.39% | 351.57% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Estée Lauder Cos. Inc. | 445.74% | 326.67% | 293.03% | 262.31% | 250.56% | |
| Kimberly-Clark Corp. | 256.79% | 196.30% | 197.43% | 224.62% | 231.01% | |
| Nike Inc. | 327.83% | 314.21% | 250.89% | 262.06% | 284.02% | |
Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-18).
1 MVA. See details »
2 2019 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × 60,724 ÷ 15,693 = 386.95%
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. | Colgate-Palmolive Co.’s MVA margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |