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.
MVA
ConocoPhillips, MVA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2019-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | ConocoPhillips market (fair) value less invested capital. | ConocoPhillips MVA increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level. |
MVA Spread Ratio
ConocoPhillips, MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 67,790) | 70,650) | 65,795) | 32,265) | 21,984) | |
| Invested capital2 | 81,278) | 75,520) | 76,355) | 50,870) | 57,714) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 83.41% | 93.55% | 86.17% | 63.43% | 38.09% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Chevron Corp. | 47.11% | 57.71% | 54.49% | 25.83% | 21.23% | |
| Exxon Mobil Corp. | 51.71% | 67.23% | 42.25% | 18.54% | -5.98% | |
| Marathon Petroleum Corp. | 40.55% | 23.50% | 16.35% | 14.91% | -10.38% | |
| Occidental Petroleum Corp. | 37.27% | 44.52% | 34.32% | 9.79% | -5.81% | |
| Valero Energy Corp. | 19.68% | 27.46% | 19.85% | 21.44% | 4.90% | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2023 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 67,790 ÷ 81,278 = 83.41%
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. | ConocoPhillips MVA spread ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
MVA Margin
ConocoPhillips, MVA margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 67,790) | 70,650) | 65,795) | 32,265) | 21,984) | |
| Sales and other operating revenues | 56,141) | 78,494) | 45,828) | 18,784) | 32,567) | |
| Performance Ratio | ||||||
| MVA margin2 | 120.75% | 90.01% | 143.57% | 171.77% | 67.50% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Chevron Corp. | 50.80% | 51.99% | 67.80% | 53.96% | 29.71% | |
| Exxon Mobil Corp. | 47.47% | 50.09% | 41.64% | 28.44% | -7.10% | |
| Marathon Petroleum Corp. | 17.46% | 9.21% | 8.67% | 15.00% | -6.87% | |
| Occidental Petroleum Corp. | 75.01% | 68.42% | 76.78% | 34.78% | -23.98% | |
| Valero Energy Corp. | 6.95% | 7.75% | 7.75% | 13.53% | 1.84% | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 MVA. See details »
2 2023 Calculation
MVA margin = 100 × MVA ÷ Sales and other operating revenues
= 100 × 67,790 ÷ 56,141 = 120.75%
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. | ConocoPhillips MVA margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |