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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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Enterprise Value to EBITDA (EV/EBITDA)
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Debt
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MVA
Kimberly-Clark Corp., 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 »
The financial data presents key metrics related to market valuation and invested capital over a five-year period from 2016 to 2020.
- Market (fair) value
- The market value exhibited a downward trend from 2016 through 2018, declining from 52,664 million US dollars to 47,528 million US dollars. A significant recovery occurred in 2019, with the market value rising sharply to 58,784 million US dollars. However, in 2020, there was a moderate decrease to 55,371 million US dollars, remaining higher than the values recorded during 2017 and 2018.
- Invested capital
- Invested capital remained relatively stable with slight fluctuations over the same period. It started at 11,778 million US dollars in 2016, increased marginally to 11,929 million US dollars in 2017, then decreased to 11,239 million US dollars in 2018. 2019 saw a minor recovery to 11,405 million US dollars, followed by a notable increase to 12,877 million US dollars in 2020, the highest value within the five-year span.
- Market value added (MVA)
- The market value added, representing the difference between market value and invested capital, mirrored the trend in the market value. Starting at 40,886 million US dollars in 2016, MVA dropped to around 36,000 million US dollars in 2017 and 2018. A noticeable increase to 47,379 million US dollars occurred in 2019, followed by a slight decline to 42,494 million US dollars in 2020. Despite the fluctuations, the MVA remained significantly positive throughout the period, indicating substantial value creation over invested capital.
MVA Spread Ratio
Kimberly-Clark Corp., 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 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Procter & Gamble Co. | ||||||
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 × ÷ =
4 Click competitor name to see calculations.
The financial data reveals several notable trends concerning the company's market value added (MVA), invested capital, and MVA spread ratio over the five-year period from 2016 to 2020.
- Market Value Added (MVA)
- The MVA exhibited fluctuations throughout the analyzed years. It started at US$40,886 million in 2016, declined in 2017 to US$36,048 million, and remained relatively stable in 2018 at US$36,289 million. A significant increase occurred in 2019, reaching US$47,379 million, followed by a decrease in 2020 to US$42,494 million. While the value showed a similar level at the beginning and end of the period, the interim volatility suggests varying market perceptions of the company’s value creation during these years.
- Invested Capital
- Invested capital remained relatively stable with a slight upward trend overall. Starting at US$11,778 million in 2016, it increased modestly over the years, dipping to US$11,239 million in 2018 before rising again to US$12,877 million in 2020. This pattern reflects strategic investments or asset management adjustments, with a notable increase in 2020 potentially indicating capital expenditure or growth initiatives.
- MVA Spread Ratio
- The MVA spread ratio followed a pattern similar to the MVA, beginning at 347.14% in 2016 and decreasing in 2017 to 302.19%. It recovered somewhat in 2018, reaching 322.89%, before peaking sharply at 415.42% in 2019. In 2020, it declined again to 330%. This ratio’s fluctuations suggest variations in the return spread relative to the cost of capital, with the peak in 2019 implying a period of enhanced value generation efficiency relative to invested capital.
In summary, the data indicates periods of both contraction and expansion in market perception and value creation, combined with relatively stable but gradually increasing invested capital. The elevated MVA spread ratio in 2019 points to a year of notable value creation efficiency, followed by a moderation in 2020. These trends may reflect broader market conditions, strategic corporate actions, or operational performance influencing investor confidence and capital utilization.
MVA Margin
Kimberly-Clark Corp., MVA margin calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Net sales | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Procter & Gamble Co. | ||||||
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 ÷ Net sales
= 100 × ÷ =
3 Click competitor name to see calculations.
The analysis of the financial data over the five-year period reveals several noteworthy trends in the company’s market value and sales performance.
- Market Value Added (MVA)
- The MVA fluctuated over the years, beginning at $40,886 million in 2016 and showing a decline to $36,048 million in 2017. It remained relatively stable in 2018 with a slight increase to $36,289 million, followed by a significant rise to $47,379 million in 2019. In 2020, the MVA decreased again to $42,494 million. This pattern suggests volatility in the company's market value creation, with a peak in 2019.
- Net Sales
- Net sales demonstrated a stable, albeit modest, growth trend throughout the period. Starting at $18,202 million in 2016, sales increased slightly each year to reach $19,140 million in 2020. The incremental yearly increases indicate steady but limited growth in the company’s revenue base.
- MVA Margin
- The MVA margin, expressed as a percentage, paralleled the fluctuations seen in MVA. It started at 224.62% in 2016, dropped to 197.43% in 2017, and remained nearly constant at 196.3% in 2018. A pronounced increase occurred in 2019, with the margin climbing to 256.79%, before declining to 222.02% in 2020. This highlights a pattern of market value efficiency that peaked in 2019 and subsequently contracted.
Overall, the data indicate a generally stable sales performance accompanied by more pronounced variations in market value added and its margin. The peak in 2019 suggests a period of enhanced value creation efficiency that was not sustained into the following year.