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
- Statement of Comprehensive Income
- Common-Size Income Statement
- Analysis of Liquidity Ratios
- Analysis of Reportable Segments
- Enterprise Value (EV)
- Current Ratio since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
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MVA
Ecolab Inc., MVA calculation
US$ in thousands
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Ecolab
- The market value demonstrated a consistent upward trend from 2017 through 2020, increasing from approximately 46.1 billion USD to around 68.0 billion USD. However, in 2021, there was a noticeable decline to approximately 61.6 billion USD, indicating a reduction in market valuation after four years of growth.
- Invested capital
- The invested capital showed moderate fluctuations over the period. It increased slightly from about 17.4 billion USD in 2017 to 18.1 billion USD in 2019, followed by a decline in 2020 to approximately 15.6 billion USD. In 2021, invested capital rose again to approximately 18.4 billion USD, surpassing previous levels, which suggests reinvestment or capital expansion activities during that year.
- Market value added (MVA)
- The market value added, representing the difference between market value and invested capital, exhibited a strong upward trajectory from 2017 to 2020, increasing from roughly 28.8 billion USD to 52.4 billion USD. In 2021, MVA decreased to about 43.2 billion USD, reflecting a contraction in value creation relative to invested capital. Despite this decline, the 2021 MVA remained substantially higher than values in 2017 through 2019.
MVA Spread Ratio
Ecolab Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Linde plc | ||||||
| Sherwin-Williams Co. | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2021 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market value added (MVA)
- The market value added exhibited an overall increasing trend from 2017 to 2020, rising from approximately 28.76 billion US dollars to a peak of 52.43 billion US dollars. However, there was a decline in 2021, with the value decreasing to around 43.19 billion US dollars. This suggests strong growth in market value through most of the period, followed by a notable drop in the final year.
- Invested capital
- Invested capital remained relatively stable from 2017 to 2019, fluctuating slightly between approximately 17.39 billion and 18.09 billion US dollars. In 2020, it decreased to around 15.60 billion US dollars before increasing again in 2021 to about 18.43 billion US dollars. This pattern indicates a temporary reduction in invested capital during 2020, possibly reflecting strategic adjustments or impacts of external factors in that year.
- MVA spread ratio
- The MVA spread ratio showed a consistent upward trend from 2017 to 2020, increasing from about 165.39% to a high of 336.18%. In 2021, despite the decline in MVA, the ratio remained robust at 234.35%, significantly higher than the initial value in 2017. This suggests that despite fluctuations in absolute market value added, the spread relative to invested capital improved substantially over the period, with a peak performance in 2020 followed by some moderation in 2021.
MVA Margin
Ecolab Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Net sales | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Linde plc | ||||||
| Sherwin-Williams Co. | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 MVA. See details »
2 2021 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × ÷ =
3 Click competitor name to see calculations.
The financial data reveals several key trends over the five-year period ending December 31, 2021. Market value added (MVA) showed a general upward trajectory from 2017 to 2020, increasing significantly from approximately $28.76 billion to $52.43 billion. However, in 2021, there was a noticeable decline, with MVA falling to around $43.19 billion. This suggests a peak in value creation in 2020 followed by a contraction in the subsequent year.
Net sales exhibited a different pattern. From 2017 through 2019, sales grew steadily from about $13.84 billion to $14.91 billion. In 2020, there was a marked drop to approximately $11.79 billion, reflecting a significant sales decline. The following year saw some recovery, with net sales increasing to roughly $12.73 billion, though not returning to pre-2020 levels.
The MVA margin, which measures market value added relative to net sales, showed a strong upward trend until 2020. Beginning at 207.83% in 2017, it increased consistently, reaching a peak of 444.7% in 2020. This sharp rise indicates that the company's market value added grew disproportionately faster than its sales during that year. In 2021, the margin declined to 339.21%, which, while lower, still represents a substantial value added relative to sales.
- Market Value Added (MVA)
- Increased steadily from 2017 to 2020, peaking in 2020, then declined in 2021.
- Net Sales
- Grew moderately from 2017 to 2019, fell sharply in 2020, partially rebounded in 2021.
- MVA Margin
- Rose markedly from 2017 through 2020, reflecting accelerated value creation relative to sales, then decreased in 2021 but remained substantially high.