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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- Statement of Comprehensive Income
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- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Common Stock Valuation Ratios
- Dividend Discount Model (DDM)
- Current Ratio since 2005
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MVA
Exxon Mobil Corp., 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 ExxonMobil
- The market value exhibited a consistent upward trend from 2020 through 2024, increasing from approximately $324.7 billion in 2020 to $529.8 billion in 2024. Despite a slight decline observed in 2023 compared to 2022, the overall trajectory remains strongly positive, suggesting growing investor confidence or valuation improvements over the five-year period.
- Invested capital
- Invested capital remained relatively stable in the initial years, with a minor decrease from about $273.9 billion in 2020 to $272.7 billion in 2021. Subsequent years showed a steady increase, reaching $379.0 billion by the end of 2024. The growth in invested capital from 2021 onward indicates ongoing investment or expansion activities within the company.
- Market value added (MVA)
- Market value added, representing the difference between market value and invested capital, demonstrated a substantial rise from $50.8 billion in 2020 to nearly $200 billion in 2022. However, there was a notable decline in MVA in 2023 and 2024, falling to $158.9 billion and $150.8 billion respectively. This decline suggests that although market value increased, it did so at a slower pace relative to invested capital during these years, potentially signaling diminishing returns on investment or changing market perceptions.
- Overall Insights
- The financial data indicates robust growth in market valuation alongside an expanding invested capital base. The peak in MVA in 2022 followed by consecutive decreases through 2024 may warrant attention to the efficiency of capital utilization or market conditions affecting company valuation. Continued monitoring of these metrics is advisable to assess sustainability of value creation.
MVA Spread Ratio
Exxon Mobil Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| 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 market value added displayed a significant upward trend from 2020 to 2022, rising from 50,790 million US dollars to a peak of 199,699 million US dollars. However, in the subsequent years, 2023 and 2024, there is a noticeable decline to 158,947 million and 150,767 million US dollars respectively, indicating a reduction in market value creation during these two years despite remaining above the 2020 level.
- Invested Capital
- Invested capital exhibited a steady pattern of growth over the observed period. Starting at 273,920 million US dollars in 2020, it remained relatively stable in 2021 before increasing consistently through 2022 to 2024, reaching 378,995 million US dollars in the final year. This suggests a continued expansion or reinvestment of resources in the company's operations.
- MVA Spread Ratio
- The MVA spread ratio followed a generally positive trend from 2020 until 2022, increasing from 18.54% to a maximum of 67.23%. The ratio then decreased in the two following years, 2023 and 2024, to 51.74% and then to 39.78%. Despite this decline, the ratio remained substantially higher than the initial value in 2020, which indicates that the company maintained a strong ability to generate market value relative to the invested capital, although with some reduction in efficiency in the last two years observed.
MVA Margin
Exxon Mobil Corp., 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 revenue | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| 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 revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added showed a significant upward trend from 2020 to 2022, increasing from approximately 50.8 billion to about 199.7 billion US dollars. However, after peaking in 2022, MVA declined in subsequent years, falling to around 158.9 billion in 2023 and further to approximately 150.8 billion in 2024. This indicates a period of strong value creation followed by a reduction in market value enhancement.
- Sales and Other Operating Revenue
- Sales and other operating revenue displayed a consistent growth pattern from 2020 through 2022, rising from roughly 178.6 billion to nearly 398.7 billion US dollars. In 2023, revenue contracted to about 334.7 billion but showed a slight recovery to 339.2 billion in 2024. Despite the dip after 2022, revenue levels remained substantially higher than the 2020 baseline, indicating elevated operational activity.
- MVA Margin
- The MVA margin increased steadily from 28.44% in 2020 to a peak of 50.09% in 2022. Following this peak, there was a moderate decline to 47.49% in 2023 and further to 44.44% in 2024. This trend suggests that while the firm initially improved its efficiency in generating market value relative to revenues, there was some erosion in this efficiency during the latter years.
- Overall Analysis
- The data reflects a period of robust growth in both market value added and revenue through 2022, accompanied by increasing profitability as indicated by the rising MVA margin. The downward shift from 2023 onwards across these indicators signals a phase of market adjustment or operational challenges, with reduced growth momentum and slightly diminished efficiency in converting revenues into market value. Despite these declines, the levels in 2023 and 2024 remain well above those at the start of the period, demonstrating sustained elevated business performance relative to 2020.