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
Marathon Oil Corp., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2021-12-31), 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).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Marathon Oil Corp. market (fair) value less invested capital. | Marathon Oil Corp. MVA increased from 2019 to 2020 and from 2020 to 2021. |
MVA Spread Ratio
Marathon Oil Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 5,932) | (1,194) | (3,415) | 1,741) | 1,255) | |
| Invested capital2 | 14,862) | 16,214) | 17,954) | 17,565) | 17,726) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 39.92% | -7.36% | -19.02% | 9.91% | 7.08% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Chevron Corp. | 54.49% | 25.83% | 21.23% | — | — | |
| ConocoPhillips | 86.17% | 63.43% | 38.09% | — | — | |
| Exxon Mobil Corp. | 42.25% | 18.54% | -5.98% | — | — | |
| Marathon Petroleum Corp. | 16.35% | 14.91% | -10.38% | — | — | |
| Occidental Petroleum Corp. | 34.32% | 9.79% | -5.81% | — | — | |
| Pioneer Natural Resources Co. | 93.10% | 117.88% | 55.00% | — | — | |
| Valero Energy Corp. | 19.85% | 21.44% | 4.90% | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 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).
1 MVA. See details »
2 Invested capital. See details »
3 2021 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 5,932 ÷ 14,862 = 39.92%
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. | Marathon Oil Corp. MVA spread ratio improved from 2019 to 2020 and from 2020 to 2021. |
MVA Margin
Marathon Oil Corp., MVA margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 5,932) | (1,194) | (3,415) | 1,741) | 1,255) | |
| Revenues | 5,601) | 3,097) | 5,063) | 5,902) | 4,373) | |
| Performance Ratio | ||||||
| MVA margin2 | 105.92% | -38.55% | -67.44% | 29.49% | 28.71% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Chevron Corp. | 67.80% | 53.96% | 29.71% | — | — | |
| ConocoPhillips | 143.57% | 171.77% | 67.50% | — | — | |
| Exxon Mobil Corp. | 41.64% | 28.44% | -7.10% | — | — | |
| Marathon Petroleum Corp. | 8.67% | 15.00% | -6.87% | — | — | |
| Occidental Petroleum Corp. | 76.78% | 34.78% | -23.98% | — | — | |
| Pioneer Natural Resources Co. | 170.12% | 285.36% | 94.87% | — | — | |
| Valero Energy Corp. | 7.75% | 13.53% | 1.84% | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 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).
1 MVA. See details »
2 2021 Calculation
MVA margin = 100 × MVA ÷ Revenues
= 100 × 5,932 ÷ 5,601 = 105.92%
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. | Marathon Oil Corp. MVA margin ratio improved from 2019 to 2020 and from 2020 to 2021. |