Microsoft Excel LibreOffice Calc

Lockheed Martin Corp. (LMT)


Market Value Added (MVA)

High level of difficulty

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

Lockheed Martin Corp., MVA calculation

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Fair value of outstanding debt and commercial paper1 15,400  16,800  16,200  16,500  7,900 
Operating lease liability 1,084  557  667  679  709 
Market value of common equity 85,193  97,500  74,960  66,178  60,914 
Noncontrolling interests in subsidiary 55  74  95  —  — 
Less: Marketable securities 1,300  1,400  1,200  1,100  1,100 
Market (fair) value of Lockheed Martin 100,431  113,531  90,721  82,257  68,423 
Less: Invested capital2 24,942  21,063  19,892  22,569  14,960 
MVA 75,490  92,468  70,830  59,688  53,463 

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-09).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA Lockheed Martin Corp.’s market (fair) value less invested capital. Lockheed Martin Corp.’s MVA increased from 2016 to 2017 but then slightly declined from 2017 to 2018 not reaching 2016 level.

MVA Spread Ratio

Lockheed Martin Corp., MVA spread ratio calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Market value added (MVA)1 75,490  92,468  70,830  59,688  53,463 
Invested capital2 24,942  21,063  19,892  22,569  14,960 
Performance Ratio
MVA spread ratio3 302.66% 439.00% 356.08% 264.46% 357.36%

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-09).

1 MVA. See details »

2 Invested capital. See details »

3 2018 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 75,490 ÷ 24,942 = 302.66%

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. Lockheed Martin Corp.’s MVA spread ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

MVA Margin

Lockheed Martin Corp., MVA margin calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Market value added (MVA)1 75,490  92,468  70,830  59,688  53,463 
Net sales 53,762  51,048  47,248  46,132  45,600 
Performance Ratio
MVA margin2 140.41% 181.14% 149.91% 129.38% 117.24%

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-09).

1 MVA. See details »

2 2018 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × 75,490 ÷ 53,762 = 140.41%

Performance ratio Description The company
MVA margin The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value. Lockheed Martin Corp.’s MVA margin ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.