Market Value Added (MVA)
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 Motors Co., MVA calculation
US$ in millions
Based on: 10-K (filing date: 2021-02-10), 10-K (filing date: 2020-02-05), 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-07).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | General Motors Co.’s market (fair) value less invested capital. | General Motors Co.’s MVA decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level. |
MVA Spread Ratio
General Motors Co., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 39,588 | 12,312 | 19,920 | 32,428 | 25,438 | |
| Invested capital2 | 152,792 | 145,313 | 139,594 | 117,416 | 103,211 | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 25.91% | 8.47% | 14.27% | 27.62% | 24.65% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Tesla Inc. | 2,108.69% | 544.89% | 220.41% | 328.21% | 266.24% | |
Based on: 10-K (filing date: 2021-02-10), 10-K (filing date: 2020-02-05), 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-07).
1 MVA. See details »
2 Invested capital. See details »
3 2020 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 39,588 ÷ 152,792 = 25.91%
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 Motors Co.’s MVA spread ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
MVA Margin
General Motors Co., MVA margin calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 39,588 | 12,312 | 19,920 | 32,428 | 25,438 | |
| Automotive net sales and revenue | 108,673 | 122,697 | 133,045 | 133,449 | 156,849 | |
| Add: Increase (decrease) in deferred revenue | (349) | (267) | 176 | 1,307 | 883 | |
| Adjusted automotive net sales and revenue | 108,324 | 122,430 | 133,221 | 134,756 | 157,732 | |
| Performance Ratio | ||||||
| MVA margin2 | 36.55% | 10.06% | 14.95% | 24.06% | 16.13% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Tesla Inc. | 2,591.72% | 548.16% | 224.10% | 453.82% | 466.90% | |
Based on: 10-K (filing date: 2021-02-10), 10-K (filing date: 2020-02-05), 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-07).
1 MVA. See details »
2 2020 Calculation
MVA margin = 100 × MVA ÷ Adjusted automotive net sales and revenue
= 100 × 39,588 ÷ 108,324 = 36.55%
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 Motors Co.’s MVA margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |