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
Freeport-McMoRan Inc., 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 | Freeport-McMoRan Inc. market (fair) value less invested capital. | Freeport-McMoRan Inc. MVA decreased from 2021 to 2022 and from 2022 to 2023. |
MVA Spread Ratio
Freeport-McMoRan Inc., 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 | 40,951) | 44,211) | 48,396) | 35,491) | 8,246) | |
| Invested capital2 | 35,126) | 36,035) | 35,043) | 32,173) | 28,120) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 116.58% | 122.69% | 138.11% | 110.31% | 29.32% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Newmont Corp. | 25.25% | 73.55% | 116.86% | 84.77% | 63.30% | |
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 × 40,951 ÷ 35,126 = 116.58%
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. | Freeport-McMoRan Inc. MVA spread ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
MVA Margin
Freeport-McMoRan Inc., 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 | 40,951) | 44,211) | 48,396) | 35,491) | 8,246) | |
| Revenues | 22,855) | 22,780) | 22,845) | 14,198) | 14,402) | |
| Add: Increase (decrease) in deferred revenue | 85) | (115) | 126) | 53) | (23) | |
| Adjusted revenues | 22,940) | 22,665) | 22,971) | 14,251) | 14,379) | |
| Performance Ratio | ||||||
| MVA margin2 | 178.51% | 195.06% | 210.68% | 249.04% | 57.35% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Newmont Corp. | 77.76% | 142.24% | 263.58% | 217.23% | 188.10% | |
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 revenues
= 100 × 40,951 ÷ 22,940 = 178.51%
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. | Freeport-McMoRan Inc. MVA margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |