Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

General Dynamics Corp. (NYSE:GD)

Market Value Added (MVA)

Advanced level

Market value added (MVA) is the difference between a firms’s 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

General Dynamics Corp., MVA calculation

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Fair value of short- and long-term debt principal1 12,339  12,346  3,974  3,849  3,381 
Operating lease liability 1,503  1,465  1,206  1,070  946 
Market value of common equity 53,943  50,003  62,217  55,414  41,154 
Market (fair) value of General Dynamics 67,785  63,814  67,397  60,333  45,481 
Less: Invested capital2 31,608  29,939  19,772  19,539  18,175 
MVA 36,177  33,875  47,625  40,794  27,306 

Based on: 10-K (filing date: 2020-02-10), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA General Dynamics Corp.’s market (fair) value less invested capital. General Dynamics Corp.’s MVA decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.

MVA Spread Ratio

General Dynamics Corp., MVA spread ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Market value added (MVA)1 36,177  33,875  47,625  40,794  27,306 
Invested capital2 31,608  29,939  19,772  19,539  18,175 
Performance Ratio
MVA spread ratio3 114.46% 113.15% 240.87% 208.78% 150.24%
Benchmarks
MVA Spread Ratio, Competitors4
Boeing Co. 489.80% 685.49% 713.58% 347.05% 187.62%
Lockheed Martin Corp. 441.71% 302.66% 439.00% 356.08% 264.46%
Northrop Grumman Corp. 243.75% 159.43% 176.10% 184.20% 152.06%
Raytheon Technologies Corp. 81.14% 50.63% 89.01% 81.54% 59.80%

Based on: 10-K (filing date: 2020-02-10), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

1 MVA. See details »

2 Invested capital. See details »

3 2019 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 36,177 ÷ 31,608 = 114.46%

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. General Dynamics Corp.’s MVA spread ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

MVA Margin

General Dynamics Corp., MVA margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Market value added (MVA)1 36,177  33,875  47,625  40,794  27,306 
Revenue 39,350  36,193  30,973  31,353  31,469 
Performance Ratio
MVA margin2 91.94% 93.60% 153.76% 130.11% 86.77%
Benchmarks
MVA Margin, Competitors3
Boeing Co. 227.39% 210.62% 201.78% 91.56% 60.37%
Lockheed Martin Corp. 189.58% 140.41% 181.14% 149.91% 129.38%
Northrop Grumman Corp. 169.32% 127.54% 187.05% 127.27% 106.36%
Raytheon Technologies Corp. 109.88% 78.02% 105.03% 91.93% 63.69%

Based on: 10-K (filing date: 2020-02-10), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

1 MVA. See details »

2 2019 Calculation
MVA margin = 100 × MVA ÷ Revenue
= 100 × 36,177 ÷ 39,350 = 91.94%

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. General Dynamics Corp.’s MVA margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019.