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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- Income Statement
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Geographic Areas
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Net Profit Margin since 2005
- Aggregate Accruals
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MVA
ConocoPhillips, 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 ConocoPhillips
- The market value experienced a significant increase from 83,135 million USD at the end of 2020 to 149,068 million USD by the end of 2023, indicating a strong upward trend over these years. However, there is a slight decline projected for 2024, with the value decreasing marginally to 147,392 million USD, suggesting a leveling off or minor correction after the previous growth period.
- Invested capital
- Invested capital rose substantially from 50,870 million USD in 2020 to 81,278 million USD in 2023, reflecting continued capital deployment and expansion. Notably, a significant increase is projected for 2024, where invested capital jumps to 106,371 million USD. This sharp rise may suggest increased investment in assets or business operations preceding the end of the analyzed period.
- Market value added (MVA)
- The market value added showed a robust increase from 32,265 million USD in 2020 to 70,650 million USD in 2022, demonstrating growing value creation over the invested capital during this period. However, the MVA declines to 67,790 million USD in 2023 and drops more sharply to 41,021 million USD in 2024, which could indicate diminishing value creation relative to the capital invested or market expectations adjusting downward despite the increase in invested capital.
MVA Spread Ratio
ConocoPhillips, 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 | ||||||
| Chevron Corp. | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
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 MVA exhibited a strong upward trend from 2020 to 2022, more than doubling from 32,265 million US dollars to 70,650 million US dollars. This growth indicates a significant enhancement in the market's valuation of the company relative to its invested capital during this period. However, following 2022, the MVA declined, first to 67,790 million in 2023 and then more sharply to 41,021 million in 2024, suggesting a reduction in market value perception or increased market challenges thereafter.
- Invested Capital
- Invested capital displayed a consistent upward trajectory over the analyzed period. Beginning at 50,870 million US dollars in 2020, it increased steadily each year to reach 106,371 million US dollars by 2024. This trend reflects ongoing capital investments, expansions, or acquisitions made by the company, effectively more than doubling the invested capital over five years.
- MVA Spread Ratio
- The MVA spread ratio, representing the market value added relative to the invested capital, showed strong improvement from 63.43% in 2020 to a peak of 93.55% in 2022. This indicates increasing efficiency or profitability in utilizing invested capital to generate market value. Nonetheless, this ratio decreased notably in 2023 to 83.41% and further dropped to 38.56% by 2024, implying a significant decline in market value creation relative to the capital invested during the later period.
- Overall Analysis
- The data reveals a pattern of robust market value growth surpassing invested capital increases between 2020 and 2022, highlighting effective capital deployment and positive market sentiment. However, from 2023 onwards, despite continued substantial capital investment, the market value added and the MVA spread ratio both diminished markedly. This divergence suggests emerging operational or external challenges impacting the company's ability to generate proportional market value from its invested capital.
MVA Margin
ConocoPhillips, 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 | ||||||
| Sales and other operating revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Chevron Corp. | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
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 ÷ Sales and other operating revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
The financial data reveals significant fluctuations across the reported periods with notable trends in market value added (MVA), sales and other operating revenues, and MVA margin.
- Market Value Added (MVA):
- The MVA exhibited considerable growth from 32,265 million US dollars in 2020 to a peak of 70,650 million US dollars in 2022. However, following this peak, the MVA declined to 67,790 million in 2023 and experienced a more pronounced drop to 41,021 million by the end of 2024. This trend indicates initial strong enhancement of market value which later faced a setback, suggesting possible challenges or market corrections in the latter years.
- Sales and Other Operating Revenues:
- Sales showed a substantial increase from 18,784 million US dollars in 2020 to a much higher figure of 78,494 million in 2022. Subsequently, revenues decreased to 56,141 million in 2023 and marginally declined further to 54,745 million in 2024. This pattern points to accelerated growth culminating in 2022 followed by a significant contraction in the subsequent years, which may reflect market dynamics, demand fluctuations, or operational adjustments.
- MVA Margin (%):
- The MVA margin demonstrates a declining trend overall, starting at 171.77% in 2020 and falling to 74.93% in 2024. Notably, there was a steep drop from 171.77% in 2020 to 90.01% in 2022, a slight recovery to 120.75% in 2023, and a further decline in the final year observed. This margin volatility suggests diminishing efficiency or profitability in relation to the market value added despite fluctuations, with a pronounced downward pressure over the five-year span.
In summary, the data reflects a period of rapid growth followed by contractions across all key metrics. The market value and revenues peaked in 2022 before declining, and alongside this, the MVA margin showed a decreasing trajectory, indicating potential challenges to sustained value creation and operational performance in recent years.