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
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Analysis of Revenues
- Analysis of Debt
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MVA
General Mills Inc., MVA calculation
US$ in thousands
Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of General Mills
- The market value demonstrated an overall upward trend over the six-year period, increasing from approximately $43.26 billion in 2014 to $47.61 billion in 2019. A notable peak occurred in 2016 at around $52.88 billion, followed by a decline in 2017 to $42.95 billion. Subsequently, the value stabilized and rose again by 2019.
- Invested capital
- Invested capital showed relative stability from 2014 through 2017, fluctuating slightly around the $18.4 billion to $19.4 billion range. However, in 2018, invested capital increased substantially to approximately $27.61 billion and remained near this elevated level through 2019.
- Market value added (MVA)
- MVA experienced an increasing trend during the early years, rising from about $23.90 billion in 2014 to a peak of $34.48 billion in 2016. After this peak, there was a marked decrease to $23.97 billion in 2017, followed by a further decline in 2018 to approximately $15.97 billion. By 2019, MVA showed some recovery, reaching about $20.22 billion, though still remaining below earlier peak levels.
- Overall insights
- The data indicates that while market value increased modestly over the period, invested capital saw a significant rise in the later years, particularly post-2017. The peak and subsequent decline in MVA suggest fluctuations in the value created over and above the invested capital. The decrease in MVA despite a rising invested capital in the later years may indicate diminishing market perceptions of value creation or challenges in generating returns exceeding the invested resources during that period.
MVA Spread Ratio
General Mills Inc., MVA spread ratio calculation, comparison to benchmarks
| May 26, 2019 | May 27, 2018 | May 28, 2017 | May 29, 2016 | May 31, 2015 | May 25, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Market value added (MVA)1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| MVA spread ratio3 | |||||||
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Coca-Cola Co. | |||||||
| Mondelēz International Inc. | |||||||
| PepsiCo Inc. | |||||||
| Philip Morris International Inc. | |||||||
Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25).
1 MVA. See details »
2 Invested capital. See details »
3 2019 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added shows a fluctuating trend over the six-year period. Initially, there is a rise from approximately 23.9 billion in 2014 to a peak of about 34.5 billion in 2016. Following this peak, the MVA declines notably, dropping to around 15.97 billion in 2018 before a slight recovery to approximately 20.2 billion in 2019. This pattern indicates significant volatility in market perception or company valuation during this timeframe.
- Invested Capital
- The Invested Capital remains relatively stable in the first four years, hovering around 18.4 to 19.4 billion from 2014 to 2017. However, a considerable increase is observed in 2018, where invested capital rises sharply to approximately 27.6 billion, maintaining a similar elevated level in 2019. This suggests a substantial capital infusion or increased asset base beginning in 2018.
- MVA Spread Ratio
- The MVA spread ratio exhibits a pattern closely aligned with the MVA fluctuations. It starts at 123.44% in 2014, increases to a peak of 187.4% in 2016, then declines sharply to 57.86% in 2018. A moderate recovery to 73.84% occurs in 2019. The sharp decrease corresponds with the increased invested capital and reduced MVA in 2018, indicating a diminished relative return or market premium on invested capital during those years.
- Overall Insights
- The data reflects a period of volatility and structural change. The peak in both MVA and MVA spread ratio in 2016 suggests strong market value relative to invested capital, possibly indicating efficient capital utilization or favorable market conditions. The subsequent decline in both MVA and MVA spread ratio, alongside a significant rise in invested capital from 2018 onward, implies challenges in generating additional market value relative to the increased investment base. This could be attributed to external market factors or internal operational shifts requiring further analysis.
MVA Margin
General Mills Inc., MVA margin calculation, comparison to benchmarks
| May 26, 2019 | May 27, 2018 | May 28, 2017 | May 29, 2016 | May 31, 2015 | May 25, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Market value added (MVA)1 | |||||||
| Net sales | |||||||
| Performance Ratio | |||||||
| MVA margin2 | |||||||
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Coca-Cola Co. | |||||||
| Mondelēz International Inc. | |||||||
| PepsiCo Inc. | |||||||
| Philip Morris International Inc. | |||||||
Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25).
1 MVA. See details »
2 2019 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added exhibited a fluctuating trend over the analyzed period. It increased from approximately 23.9 billion US dollars in 2014 to a peak of around 34.5 billion in 2016. Subsequent years saw a decline, with a sharp drop to approximately 16 billion by 2018, before a slight recovery to about 20.2 billion in 2019. This pattern indicates volatility in the company's market value creation during these years.
- Net Sales
- Net sales demonstrated a generally decreasing trajectory from 2014 through 2017, declining from approximately 17.9 billion US dollars to 15.6 billion. In 2018, net sales stabilized slightly but remained relatively flat, while in 2019 there was a noticeable increase to about 16.9 billion. This suggests that sales experienced a dip followed by signs of recovery in the final year analyzed.
- MVA Margin
- The MVA margin percentage showed variability with an initial increase from 133.45% in 2014 to a high of 208.19% in 2016. After this peak, the margin declined consistently, registering 101.48% in 2018, the lowest point during the period, before rising modestly to 119.89% in 2019. This trend aligns with the fluctuations observed in both Market Value Added and net sales, reflecting shifts in market value relative to sales.