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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McDonald’s Corp. pages available for free this week:
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
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MVA
McDonald’s Corp., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Fair value of debt. See details »
2 Invested capital. See details »
The provided financial data reveals several trends over the five-year period from 2020 to 2024.
- Market (fair) value of the company
- This value shows a consistent upward trend across the years. Starting at $215,277 million in 2020, it rises steadily each year, reaching $271,894 million in 2024. This indicates an overall increase in market valuation, suggesting positive investor sentiment or growth expectations.
- Invested capital
- The invested capital exhibits more variability. Beginning at $46,817 million in 2020, it shows a slight increase to $47,779 million in 2021, followed by a decrease to $45,461 million in 2022. The figure then rises to a peak of $50,097 million in 2023 before settling at $49,627 million in 2024. While overall capital invested has increased slightly from 2020 to 2024, the fluctuations imply active management of capital investments or changes in asset base.
- Market Value Added (MVA)
- MVA reflects the difference between market value and invested capital. It demonstrates a consistent increase from $168,460 million in 2020 to $222,267 million in 2024. This smooth increasing trend indicates that the market value added by the company has improved steadily, reflecting effective value creation beyond the invested capital.
Overall, the data suggests that the company’s market valuation and value added have grown consistently over the five-year span, while invested capital has experienced some fluctuations but with a slight upward movement. The increasing MVA highlights enhanced market recognition of value generation relative to the capital employed.
MVA Spread Ratio
McDonald’s Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| Starbucks Corp. | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added shows a consistent upward trend over the five-year period. It increased from 168,460 million US dollars in 2020 to 222,267 million US dollars in 2024. This represents a notable growth, indicating enhanced market perception and value creation for shareholders.
- Invested Capital
- Invested capital displayed minor fluctuations throughout the same period. Starting at 46,817 million US dollars in 2020, it slightly increased in 2021 to 47,779 million US dollars, decreased to 45,461 million US dollars in 2022, then rose again in 2023 to 50,097 million US dollars before a slight decline to 49,627 million US dollars in 2024. Overall, the invested capital remained relatively stable with moderate changes year over year.
- MVA Spread Ratio
- The MVA spread ratio exhibited a steady upward trajectory, improving from 359.83% in 2020 to 447.88% in 2024. This increasing ratio suggests an expanding spread between the market value and invested capital, indicating more effective utilization or value generation from the invested funds over time.
- Summary
- The data reflect a positive performance trend with growing market value exceeding the fluctuations in invested capital. The steady increase in the MVA spread ratio confirms increasing efficiency in capital deployment or investor confidence. The overall financial indicators demonstrate strengthened market valuation relative to the invested capital base over the period analyzed.
MVA Margin
McDonald’s Corp., MVA margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Revenues | ||||||
| Add: Increase (decrease) in deferred revenues, initial franchise fees | ||||||
| Adjusted revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| Starbucks Corp. | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added demonstrates an overall upward trend from 2020 to 2024. It increased steadily from 168,460 million US dollars in 2020 to 222,267 million US dollars in 2024, indicating consistent growth in the company's market valuation over the five-year period.
- Adjusted Revenues
- Adjusted revenues exhibit a positive trend with some fluctuation. There was a significant increase from 19,249 million US dollars in 2020 to 23,259 million US dollars in 2021. However, revenues remained nearly flat in 2022 at 23,202 million US dollars. Subsequently, revenues rose again to 25,526 million US dollars in 2023 and further to 25,908 million US dollars in 2024, reflecting moderate growth in the latter years.
- MVA Margin
- The MVA margin, expressed as a percentage, reveals a slight decline initially followed by stabilization and a modest increase. The margin decreased from 875.15% in 2020 to 808.92% in 2021, then improved to 834.91% in 2022. It continued rising modestly to 844.34% in 2023 and 857.91% in 2024. This suggests that despite fluctuations, the company sustained a strong market value relative to its adjusted revenues.