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
Humana 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 | Humana Inc. market (fair) value less invested capital. | Humana Inc. MVA increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
MVA Spread Ratio
Humana 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 | 26,163) | 45,570) | 37,671) | 35,658) | 37,022) | |
| Invested capital2 | 30,225) | 29,089) | 30,647) | 21,850) | 18,877) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 86.56% | 156.66% | 122.92% | 163.20% | 196.12% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Abbott Laboratories | 257.59% | 230.60% | 266.78% | 300.18% | 202.12% | |
| Cigna Group | 49.48% | 36.39% | 21.75% | 20.67% | 16.09% | |
| CVS Health Corp. | 8.29% | 26.73% | 49.51% | 20.97% | 20.89% | |
| Elevance Health Inc. | 105.04% | 108.24% | 115.84% | 72.12% | 79.88% | |
| Intuitive Surgical Inc. | 1,699.53% | 1,400.02% | 2,002.36% | 1,853.43% | 1,771.30% | |
| Medtronic PLC | 88.43% | 93.80% | 163.10% | 107.64% | 113.36% | |
| Shockwave Medical Inc. | 1,361.22% | 2,047.13% | 3,455.61% | 4,218.08% | 459.40% | |
| UnitedHealth Group Inc. | 192.81% | 214.27% | 265.59% | 189.93% | 187.47% | |
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 × 26,163 ÷ 30,225 = 86.56%
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. | Humana Inc. MVA spread ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
MVA Margin
Humana 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 | 26,163) | 45,570) | 37,671) | 35,658) | 37,022) | |
| External revenues | 105,305) | 92,488) | 82,877) | 76,001) | 64,387) | |
| Add: Increase (decrease) in unearned revenues | (20) | 32) | (64) | 71) | (36) | |
| Adjusted external revenues | 105,285) | 92,520) | 82,813) | 76,072) | 64,351) | |
| Performance Ratio | ||||||
| MVA margin2 | 24.85% | 49.25% | 45.49% | 46.87% | 57.53% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Abbott Laboratories | 383.09% | 323.76% | 384.46% | 523.78% | 368.47% | |
| Cigna Group | 21.87% | 17.38% | 11.43% | 12.17% | 9.91% | |
| CVS Health Corp. | 3.14% | 10.28% | 22.27% | 10.70% | 11.44% | |
| Elevance Health Inc. | 43.12% | 46.51% | 54.14% | 33.92% | 42.99% | |
| Intuitive Surgical Inc. | 1,695.34% | 1,209.45% | 1,575.51% | 1,900.32% | 1,312.48% | |
| Medtronic PLC | 199.61% | 205.92% | 391.27% | 264.99% | 269.43% | |
| Shockwave Medical Inc. | 1,253.54% | 1,329.51% | 2,539.18% | 5,679.41% | 1,698.10% | |
| UnitedHealth Group Inc. | 95.85% | 109.81% | 130.39% | 96.88% | 91.49% | |
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 external revenues
= 100 × 26,163 ÷ 105,285 = 24.85%
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. | Humana Inc. MVA margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |