Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Ecolab Inc. (NYSE:ECL)

Market Value Added (MVA)

Advanced level

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

Ecolab Inc., MVA calculation

US$ in thousands

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Fair value of debt1 6,941,700  7,186,900  7,730,700  6,993,800  6,749,500 
Operating lease liability 578,400  574,702  552,978  389,307  327,626 
Market value of common equity 51,999,634  48,981,106  37,794,238  36,610,673  31,459,077 
Noncontrolling interest 40,500  50,400  70,200  69,800  70,500 
Market (fair) value of Ecolab 59,560,234  56,793,108  46,148,116  44,063,580  38,606,703 
Less: Invested capital2 18,090,500  17,830,002  17,388,578  16,350,107  15,955,526 
MVA 41,469,734  38,963,106  28,759,538  27,713,473  22,651,177 

Based on: 10-K (filing date: 2020-02-28), 10-K (filing date: 2019-03-01), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA Ecolab Inc.’s market (fair) value less invested capital. Ecolab Inc.’s MVA increased from 2017 to 2018 and from 2018 to 2019.

MVA Spread Ratio

Ecolab Inc., MVA spread ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in thousands)
Market value added (MVA)1 41,469,734  38,963,106  28,759,538  27,713,473  22,651,177 
Invested capital2 18,090,500  17,830,002  17,388,578  16,350,107  15,955,526 
Performance Ratio
MVA spread ratio3 229.23% 218.53% 165.39% 169.50% 141.96%
Benchmarks
MVA Spread Ratio, Competitors4
Air Products & Chemicals Inc. 228.05% 132.25% 150.16% 144.35% 155.52%
Linde plc 57.34% 37.54% 150.40% 111.71% 93.58%

Based on: 10-K (filing date: 2020-02-28), 10-K (filing date: 2019-03-01), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

1 MVA. See details »

2 Invested capital. See details »

3 2019 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 41,469,734 ÷ 18,090,500 = 229.23%

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. Ecolab Inc.’s MVA spread ratio improved from 2017 to 2018 and from 2018 to 2019.

MVA Margin

Ecolab Inc., MVA margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in thousands)
Market value added (MVA)1 41,469,734  38,963,106  28,759,538  27,713,473  22,651,177 
Net sales 14,906,300  14,668,200  13,838,300  13,152,800  13,545,100 
Performance Ratio
MVA margin2 278.20% 265.63% 207.83% 210.70% 167.23%
Benchmarks
MVA Margin, Competitors3
Air Products & Chemicals Inc. 432.67% 247.26% 287.22% 230.16% 225.45%
Linde plc 159.12% 214.37% 279.64% 224.82% 176.30%

Based on: 10-K (filing date: 2020-02-28), 10-K (filing date: 2019-03-01), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

1 MVA. See details »

2 2019 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × 41,469,734 ÷ 14,906,300 = 278.20%

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. Ecolab Inc.’s MVA margin ratio improved from 2017 to 2018 and from 2018 to 2019.