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.
MVA
Ford Motor Co., MVA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2019-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Ford Motor Co. market (fair) value less invested capital. | Ford Motor Co. MVA decreased from 2021 to 2022 but then slightly increased from 2022 to 2023. |
MVA Spread Ratio
Ford Motor Co., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 13,778) | 6,784) | 28,502) | 19,543) | 1,485) | |
| Invested capital2 | 173,985) | 164,218) | 160,105) | 170,559) | 173,780) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 7.92% | 4.13% | 17.80% | 11.46% | 0.85% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| General Motors Co. | -10.71% | -7.65% | 14.16% | 25.91% | 8.47% | |
| Tesla Inc. | 829.33% | 1,006.95% | 2,259.91% | 2,108.72% | 544.89% | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2023 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 13,778 ÷ 173,985 = 7.92%
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. | Ford Motor Co. MVA spread ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
MVA Margin
Ford Motor Co., MVA margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 13,778) | 6,784) | 28,502) | 19,543) | 1,485) | |
| Company revenues excluding Ford Credit | 165,901) | 149,079) | 126,268) | 115,941) | 143,640) | |
| Add: Increase (decrease) in deferred revenue | 279) | 255) | 312) | 438) | 202) | |
| Adjusted company revenues excluding Ford Credit | 166,180) | 149,334) | 126,580) | 116,379) | 143,842) | |
| Performance Ratio | ||||||
| MVA margin2 | 8.29% | 4.54% | 22.52% | 16.79% | 1.03% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| General Motors Co. | -12.25% | -9.11% | 20.89% | 36.55% | 10.06% | |
| Tesla Inc. | 550.24% | 605.55% | 1,666.45% | 2,591.75% | 548.16% | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 MVA. See details »
2 2023 Calculation
MVA margin = 100 × MVA ÷ Adjusted company revenues excluding Ford Credit
= 100 × 13,778 ÷ 166,180 = 8.29%
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. | Ford Motor Co. MVA margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |