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
HCA Healthcare Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | HCA Healthcare Inc. market (fair) value less invested capital. | HCA Healthcare Inc. MVA increased from 2018 to 2019 and from 2019 to 2020. |
MVA Spread Ratio
HCA Healthcare Inc., 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 | 65,907 | 57,708 | 55,519 | 45,874 | 42,385 | |
| Invested capital2 | 34,570 | 33,534 | 29,729 | 27,635 | 25,484 | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 190.65% | 172.09% | 186.75% | 166.00% | 166.32% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Abbott Laboratories | 300.18% | 202.12% | 161.57% | 105.00% | 114.62% | |
| Anthem Inc. | 72.12% | 79.88% | 94.05% | 65.09% | 34.84% | |
| Becton, Dickinson & Co. | 85.86% | 102.29% | 83.54% | 104.18% | 116.97% | |
| Bristol-Myers Squibb Co. | 109.83% | 90.05% | 357.63% | 562.86% | 434.48% | |
| CVS Health Corp. | 20.97% | 20.89% | 5.23% | 36.38% | 45.15% | |
| Danaher Corp. | 172.62% | 134.86% | 100.14% | 85.75% | 69.39% | |
| Edwards Lifesciences Corp. | 1,285.62% | 1,200.14% | 1,170.58% | 885.61% | 635.57% | |
| Intuitive Surgical Inc. | 1,853.39% | 1,771.30% | 2,073.81% | 2,462.94% | 1,037.27% | |
| Medtronic PLC | 107.64% | 113.36% | 91.81% | 84.10% | 81.64% | |
| Stryker Corp. | 297.75% | 303.17% | 272.41% | 259.64% | 210.02% | |
| UnitedHealth Group Inc. | 286.87% | 286.12% | 273.30% | 265.08% | 189.76% | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2020 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 65,907 ÷ 34,570 = 190.65%
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. | HCA Healthcare Inc. MVA spread ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
MVA Margin
HCA Healthcare Inc., 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 | 65,907 | 57,708 | 55,519 | 45,874 | 42,385 | |
| Revenues | 51,533 | 51,336 | 46,677 | 43,614 | 41,490 | |
| Performance Ratio | ||||||
| MVA margin2 | 127.89% | 112.41% | 118.94% | 105.18% | 102.16% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Abbott Laboratories | 523.78% | 368.47% | 311.69% | 252.28% | 250.26% | |
| Anthem Inc. | 33.92% | 42.99% | 53.80% | 36.40% | 18.66% | |
| Becton, Dickinson & Co. | 232.30% | 267.31% | 247.14% | 298.56% | 208.57% | |
| Bristol-Myers Squibb Co. | 232.86% | 345.41% | 300.74% | 448.04% | 396.64% | |
| CVS Health Corp. | 10.70% | 11.44% | 3.74% | 16.60% | 21.69% | |
| Danaher Corp. | 506.72% | 437.77% | 225.39% | 199.13% | 173.86% | |
| Edwards Lifesciences Corp. | 1,154.19% | 1,020.56% | 913.18% | 736.20% | 557.67% | |
| Intuitive Surgical Inc. | 1,900.28% | 1,312.48% | 1,410.70% | 1,322.68% | 790.83% | |
| Medtronic PLC | 264.99% | 269.43% | 217.26% | 226.55% | 220.71% | |
| Stryker Corp. | 562.92% | 474.06% | 415.93% | 365.18% | 317.37% | |
| UnitedHealth Group Inc. | 96.88% | 91.49% | 85.46% | 82.97% | 58.66% | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 MVA. See details »
2 2020 Calculation
MVA margin = 100 × MVA ÷ Revenues
= 100 × 65,907 ÷ 51,533 = 127.89%
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. | HCA Healthcare Inc. MVA margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |