Microsoft Excel LibreOffice Calc

DuPont de Nemours Inc. (DD)

Market Value Added (MVA)

Difficulty: Advanced

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

DuPont de Nemours Inc., MVA calculation

USD $ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Fair value of debt1 41,531  36,123  23,079  18,454  22,001 
Operating lease liability 2,777  2,836  1,967  2,040  2,155 
Market value of common equity 117,248  167,340  73,114  51,398  57,236 
Preferred stock, series A, $1.00 par —  —  —  4,000  4,000 
Redeemable noncontrolling interest —  —  —  —  202 
Non-redeemable noncontrolling interests 1,608  1,597  1,242  809  931 
Less: Marketable securities 1,833  1,516  1,959  1,866  2,009 
Market (fair) value of DuPont 161,331  206,380  97,443  74,836  84,516 
Less: Invested capital2 153,164  149,192  50,610  46,288  45,600 
MVA 8,167  57,188  46,833  28,547  38,916 

Based on: 10-K (filing date: 2019-02-11), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

1 Fair value of debt. See Details »

2 Invested capital. See Details »

Item Description The company
MVA DuPont de Nemours Inc.’s market (fair) value less invested capital. DuPont de Nemours Inc.’s MVA increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

MVA Spread

DuPont de Nemours Inc., MVA spread calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Market value added (MVA)1 8,167  57,188  46,833  28,547  38,916 
Invested capital2 153,164  149,192  50,610  46,288  45,600 
Ratio
MVA spread3 5.33% 38.33% 92.54% 61.67% 85.34%

Based on: 10-K (filing date: 2019-02-11), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

2018 Calculations

1 MVA. See Details »

2 Invested capital. See Details »

3 MVA spread = 100 × MVA ÷ Invested capital
= 100 × 8,167 ÷ 153,164 = 5.33%

Ratio Description The company
MVA spread 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. DuPont de Nemours Inc.’s MVA spread deteriorated from 2016 to 2017 and from 2017 to 2018.

MVA Margin

DuPont de Nemours Inc., MVA margin calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Market value added (MVA)1 8,167  57,188  46,833  28,547  38,916 
Net sales 85,977  62,484  48,158  48,778  58,167 
Add: Increase (decrease) in deferred revenue (41) 2,332  —  —  — 
Adjusted net sales 85,936  64,816  48,158  48,778  58,167 
Ratio
MVA margin2 9.50% 88.23% 97.25% 58.53% 66.90%

Based on: 10-K (filing date: 2019-02-11), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

2018 Calculations

1 MVA. See Details »

2 MVA margin = 100 × MVA ÷ Adjusted net sales
= 100 × 8,167 ÷ 85,936 = 9.50%

Ratio Description The company
MVA margin The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value. DuPont de Nemours Inc.’s MVA margin deteriorated from 2016 to 2017 and from 2017 to 2018.