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
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Return on Assets (ROA) since 2005
- Aggregate Accruals
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MVA
Ford Motor Co., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Fair value of debt. See details »
2 Invested capital. See details »
The market value of the company fluctuated over the five-year period, beginning at US$188.607 billion in 2021 and reaching US$208.406 billion in 2025. Invested capital demonstrated a consistent upward trend from 2021 to 2024, peaking at US$186.723 billion before decreasing slightly in 2025 to US$179.555 billion. Market value added (MVA) exhibited significant volatility during the observed timeframe.
- Market Value
- The market value experienced a decline in 2022, falling to US$171.002 billion, before recovering to US$187.763 billion in 2023. A subsequent decrease was noted in 2024, with the value dropping to US$183.876 billion. The highest recorded market value occurred in 2025, reaching US$208.406 billion.
- Invested Capital
- Invested capital increased steadily from US$160.105 billion in 2021 to US$186.723 billion in 2024, representing a cumulative increase of approximately 16.6%. The final year, 2025, saw a slight reduction in invested capital to US$179.555 billion, a decrease of roughly 3.9% from the 2024 peak.
- Market Value Added (MVA)
- MVA began at US$28.502 billion in 2021, then decreased substantially to US$6.784 billion in 2022. A recovery was observed in 2023, with MVA rising to US$13.778 billion. However, 2024 witnessed a negative MVA of US$2.847 billion, indicating that the value created for investors was less than the invested capital. A significant rebound occurred in 2025, with MVA reaching US$28.851 billion, surpassing the initial value recorded in 2021.
The fluctuations in MVA suggest a dynamic relationship between market perception, invested capital, and value creation. The negative MVA in 2024 warrants further investigation to understand the underlying factors contributing to the decline in investor value. The strong recovery in 2025 indicates a potential shift in market sentiment or improved operational performance.
MVA Spread Ratio
Ford Motor Co., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| General Motors Co. | ||||||
| Tesla Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
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 Market Value Added (MVA) exhibited significant fluctuations between 2021 and 2025. Initially strong at US$28.502 billion in 2021, MVA decreased substantially to US$6.784 billion in 2022 before recovering to US$13.778 billion in 2023. A notable decline occurred in 2024, resulting in a negative MVA of US$2.847 billion, followed by a strong rebound to US$28.851 billion in 2025.
Invested capital generally increased throughout the period, rising from US$160.105 billion in 2021 to US$186.723 billion in 2024. A slight decrease was observed in 2025, with invested capital falling to US$179.555 billion. This suggests continued investment in the business, with a minor adjustment in the most recent year.
- MVA Spread Ratio
- The MVA spread ratio mirrors the volatility observed in MVA. It began at 17.80% in 2021, indicating a substantial value creation relative to invested capital. The ratio decreased significantly to 4.13% in 2022 and further to 7.92% in 2023, reflecting the diminishing MVA. The ratio turned negative in 2024 at -1.52%, corresponding to the negative MVA, and then experienced a substantial increase to 16.07% in 2025, aligning with the recovery in MVA.
The correlation between MVA and the MVA spread ratio is strong, as expected. The negative MVA spread ratio in 2024 is a key observation, signaling that the market value created was less than the capital invested. The substantial recovery in both MVA and the MVA spread ratio in 2025 suggests a significant improvement in value creation relative to invested capital during that year.
The fluctuations in MVA and the MVA spread ratio suggest the company’s performance is sensitive to market conditions or internal factors. The increase in invested capital throughout most of the period, coupled with the MVA volatility, warrants further investigation into the efficiency of capital allocation and the drivers of value creation.
MVA Margin
Ford Motor Co., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Company revenues excluding Ford Credit | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted company revenues excluding Ford Credit | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| General Motors Co. | ||||||
| Tesla Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 MVA. See details »
2 2025 Calculation
MVA margin = 100 × MVA ÷ Adjusted company revenues excluding Ford Credit
= 100 × ÷ =
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited significant fluctuations between 2021 and 2025. Initially strong, MVA declined substantially in 2022 before recovering and then experiencing a notable decrease in 2024, followed by a strong rebound in 2025. This volatility suggests sensitivity to market conditions or company-specific factors impacting investor perception of value creation.
- Market Value Added (MVA)
- In 2021, MVA stood at US$28,502 million. A considerable decrease was observed in 2022, falling to US$6,784 million. MVA then increased to US$13,778 million in 2023, but experienced a negative value of US$2,847 million in 2024. The final period showed a substantial recovery, with MVA reaching US$28,851 million in 2025, exceeding the 2021 level.
- Adjusted Company Revenues
- Adjusted company revenues, excluding Ford Credit, demonstrated a consistent upward trend throughout the analyzed period. Revenues increased from US$126,580 million in 2021 to US$175,604 million in 2025. The rate of increase slowed between 2023 and 2024, and again between 2024 and 2025, but remained positive overall.
- MVA Margin
- The MVA margin mirrored the fluctuations in MVA. It began at 22.52% in 2021, declining sharply to 4.54% in 2022. A recovery to 8.29% occurred in 2023, followed by a negative margin of -1.64% in 2024. The margin rebounded strongly to 16.43% in 2025. The negative margin in 2024 indicates that the market perceived the company’s value creation as negative relative to its revenues during that year.
The divergence between the consistently increasing revenues and the volatile MVA and MVA margin suggests that factors beyond revenue growth significantly influence market valuation. These factors could include profitability, investor confidence, competitive pressures, or broader economic conditions. The strong correlation between MVA and MVA margin indicates that the market’s assessment of value creation is directly tied to revenue performance.