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 Balance Sheet: Assets
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Enterprise Value (EV)
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
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MVA
FedEx Corp., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
The analysis of the financial data over the six-year span reveals several notable trends concerning market value, invested capital, and market value added for the subject company.
- Market (fair) value
- The market value showed significant fluctuations over the period. Initially, there was a substantial increase from 80,398 million USD in 2020 to a peak of 118,028 million USD in 2021. However, this was followed by a notable decline in 2022 to 92,839 million USD. From 2022 onward, the market value displayed a moderate recovery, reaching 109,964 million USD by 2024, but then dropped again to 87,967 million USD in 2025. This trajectory indicates a volatile market valuation with a peak in 2021 and a downward trend in recent years.
- Invested capital
- Invested capital increased steadily throughout the years, starting at 57,553 million USD in 2020 and gradually rising each year, peaking at 70,379 million USD in 2025. This consistent growth reflects ongoing investment and resource allocation to capital assets without significant contraction or volatility.
- Market value added (MVA)
- Market value added experienced considerable variation during the period. The MVA rose sharply from 22,845 million USD in 2020 to a high of 53,799 million USD in 2021, mirroring the surge in market value. Following this peak, MVA decreased sharply to 26,377 million USD in 2022, showing a reduction in value creation relative to invested capital. Thereafter, MVA experienced a moderate recovery, reaching 39,699 million USD in 2024 before falling sharply again to 17,588 million USD in 2025. This pattern suggests fluctuating returns above invested capital, with significant volatility particularly in the later years.
Overall, while invested capital showed stable and gradual growth, market-related indicators (market value and MVA) exhibited pronounced volatility, peaking in 2021 and declining thereafter with intermittent recoveries. This indicates challenges in sustaining market valuation above invested capital levels amidst changing market conditions over the analyzed period.
MVA Spread Ratio
FedEx Corp., MVA spread ratio calculation, comparison to benchmarks
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 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 | |||||||
| Uber Technologies Inc. | |||||||
| Union Pacific Corp. | |||||||
| United Airlines Holdings Inc. | |||||||
| United Parcel Service Inc. | |||||||
Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31).
1 MVA. See details »
2 Invested capital. See details »
3 2025 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
The financial data indicates fluctuations in key metrics over the analyzed periods. The market value added (MVA) shows significant variability, with an initial value of 22,845 million USD in May 2020, rising sharply to a peak of 53,799 million USD in May 2021. Following this peak, MVA declined considerably in the next years, reaching 17,588 million USD by May 2025. This pattern suggests periods of both substantial value creation and subsequent decline.
Invested capital has exhibited a consistent upward trend over the same timeframe. Starting at 57,553 million USD in May 2020, invested capital gradually increased each year, reaching 70,379 million USD by May 2025. This steady growth reflects ongoing capital deployment or investment activities.
The MVA spread ratio, reflecting the efficiency or profitability relative to invested capital, mirrors the trend seen in MVA. It begins at 39.69% in May 2020 and surges to a high of 83.76% in May 2021, indicating highly efficient value generation during that period. However, subsequent years see a decline in this ratio, falling to 24.99% by May 2025. Despite some recovery attempts, the downward trend highlights diminishing returns on invested capital.
- Summary of Trends:
- The market value added showcases volatility, with a notable peak in 2021 followed by a decline through 2025.
- Invested capital increases steadily, demonstrating ongoing investment regardless of fluctuating returns.
- The MVA spread ratio experiences a sharp rise, peaking in 2021, but declines in later years, indicating reduced profitability or value generation efficiency over time.
Overall, the data reveals a period of strong value creation followed by challenges in sustaining high profitability relative to invested capital, despite continuous investment growth.
MVA Margin
FedEx Corp., MVA margin calculation, comparison to benchmarks
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Revenue | |||||||
| Performance Ratio | |||||||
| MVA margin2 | |||||||
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Uber Technologies Inc. | |||||||
| Union Pacific Corp. | |||||||
| United Airlines Holdings Inc. | |||||||
| United Parcel Service Inc. | |||||||
Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31).
1 MVA. See details »
2 2025 Calculation
MVA margin = 100 × MVA ÷ Revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
- Revenue Analysis
- The revenue of the company exhibits a general upward trend from May 31, 2020, through May 31, 2022, increasing from 69,217 million US dollars to 93,512 million US dollars. However, following this peak, a decline is observed in the subsequent years, with revenue decreasing to 90,155 million US dollars in 2023 and further to 87,693 million US dollars in 2024. The figure stabilizes slightly at 87,926 million US dollars in 2025, indicating a potential plateau phase after the earlier growth period.
- Market Value Added (MVA)
- The market value added metric demonstrates significant volatility across the observed periods. It rose sharply from 22,845 million US dollars in 2020 to a high of 53,799 million US dollars in 2021, then dropped substantially to 26,377 million US dollars in 2022. A moderate recovery is noted in 2023 and 2024, with MVA values increasing to 30,493 million and 39,699 million US dollars, respectively. However, this is followed by a notable decrease to 17,588 million US dollars in 2025. The pattern suggests fluctuating investor perception or changes in market capitalization relative to invested capital.
- MVA Margin
- The MVA margin, expressed as a percentage, aligns with the trends seen in market value added but with pronounced fluctuations. It doubled from 33% in 2020 to over 64% in 2021, indicating an improved performance or market optimism relative to revenue. Subsequently, the margin declined markedly to 28.21% in 2022 before recovering to 33.82% in 2023 and increasing further to 45.27% in 2024. In 2025, the margin falls sharply to 20%, the lowest in the series. This variability highlights inconsistency in value creation relative to revenue generation and possibly underlying operational or market challenges.
- Overall Insights
- The financial data reflects a period of growth followed by volatility. While revenue peaked in 2022, market value metrics indicate fluctuating investor confidence and potential challenges in maintaining value creation. The volatility in MVA and MVA margin contrasts with relatively moderate fluctuations in revenue, suggesting external factors or shifts in market conditions affecting valuation. The latest figures in 2025 point toward a downward adjustment in market value added and margin, which may warrant further investigation into operational efficiency, market trends, or strategic initiatives impacting performance.