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
Johnson & Johnson, MVA calculation
US$ in millions
Based on: 10-K (filing date: 2021-02-22), 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-27).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Johnson & Johnson’s market (fair) value less invested capital. | Johnson & Johnson’s MVA increased from 2018 to 2019 and from 2019 to 2020. |
MVA Spread Ratio
Johnson & Johnson, MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 357,582 | 325,672 | 291,965 | 278,803 | 254,354 | |
| Invested capital2 | 98,488 | 96,969 | 101,168 | 106,608 | 84,298 | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 363.07% | 335.85% | 288.60% | 261.52% | 301.73% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| AbbVie Inc. | 172.01% | 236.26% | 362.18% | 398.43% | 175.58% | |
| Amgen Inc. | 343.98% | 341.92% | 418.34% | 430.42% | 289.63% | |
| Eli Lilly & Co. | 778.02% | 601.09% | 443.71% | 317.93% | 313.14% | |
| Gilead Sciences Inc. | 125.57% | 226.14% | 178.10% | 362.15% | 394.70% | |
| Illumina Inc. | 1,382.87% | 789.11% | 998.68% | 841.95% | 777.45% | |
| Merck & Co. Inc. | 292.93% | 328.56% | 362.76% | 219.59% | 251.63% | |
| Pfizer Inc. | 116.68% | 95.96% | 163.95% | 129.91% | 85.80% | |
| Regeneron Pharmaceuticals Inc. | 510.95% | 463.34% | 580.61% | 593.24% | 958.29% | |
| Thermo Fisher Scientific Inc. | 231.75% | 170.63% | 137.09% | 105.23% | 80.43% | |
| Zoetis Inc. | 653.45% | 667.66% | 408.21% | 480.52% | 354.22% | |
Based on: 10-K (filing date: 2021-02-22), 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-27).
1 MVA. See details »
2 Invested capital. See details »
3 2020 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 357,582 ÷ 98,488 = 363.07%
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. | Johnson & Johnson’s MVA spread ratio improved from 2018 to 2019 and from 2019 to 2020. |
MVA Margin
Johnson & Johnson, MVA margin calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 357,582 | 325,672 | 291,965 | 278,803 | 254,354 | |
| Sales to customers | 82,584 | 82,059 | 81,581 | 76,450 | 71,890 | |
| Performance Ratio | ||||||
| MVA margin2 | 432.99% | 396.88% | 357.88% | 364.69% | 353.81% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| AbbVie Inc. | 390.51% | 445.99% | 369.91% | 638.85% | 330.39% | |
| Amgen Inc. | 550.26% | 575.79% | 468.33% | 476.30% | 427.69% | |
| Eli Lilly & Co. | 778.57% | 578.77% | 464.62% | 310.56% | 336.26% | |
| Gilead Sciences Inc. | 259.27% | 321.38% | 287.83% | 340.55% | 254.03% | |
| Illumina Inc. | 2,095.02% | 1,112.96% | 1,195.33% | 1,100.24% | 931.69% | |
| Merck & Co. Inc. | 349.01% | 376.50% | 420.85% | 272.23% | 334.87% | |
| Pfizer Inc. | 289.28% | 224.34% | 310.56% | 254.28% | 199.73% | |
| Regeneron Pharmaceuticals Inc. | 495.20% | 382.11% | 537.12% | 496.04% | 662.31% | |
| Thermo Fisher Scientific Inc. | 440.72% | 352.26% | 292.33% | 260.23% | 193.16% | |
| Zoetis Inc. | 1,131.37% | 1,049.26% | 654.82% | 679.17% | 489.40% | |
Based on: 10-K (filing date: 2021-02-22), 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-27).
1 MVA. See details »
2 2020 Calculation
MVA margin = 100 × MVA ÷ Sales to customers
= 100 × 357,582 ÷ 82,584 = 432.99%
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. | Johnson & Johnson’s MVA margin ratio improved from 2018 to 2019 and from 2019 to 2020. |