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: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Geographic Areas
- Enterprise Value (EV)
- Capital Asset Pricing Model (CAPM)
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
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MVA
Mosaic Co., MVA calculation
US$ in thousands
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 »
- Market (fair) value of Mosaic
- The market value showed fluctuations over the analyzed period. From 2017 to 2018, the value remained relatively stable, increasing marginally. In 2019, there was a notable decline, reaching the lowest point within the five-year span. Subsequently, a strong recovery occurred in 2020, with the market value surpassing previous years, and this upward trajectory continued significantly into 2021, culminating in the highest market value recorded in the timeframe.
- Invested capital
- The invested capital exhibited moderate variability. It started at a certain level in 2017, rose slightly in 2018, then dipped in 2019 and 2020, indicating a potential reduction in investment or asset base during those years. By 2021, invested capital increased again, surpassing the initial 2017 figure, suggesting renewed investment activity or asset growth in the most recent year.
- Market value added (MVA)
- The MVA demonstrated considerable volatility. In 2017, a positive MVA indicated market value exceeding invested capital. This positive value decreased sharply in 2018, nearly halving, and turned negative in 2019, reflecting a market value below invested capital for that year. The subsequent years saw a strong rebound, with MVA turning positive again in 2020 and increasing markedly in 2021, reaching the highest positive value of the observed period. This suggests improved market perceptions or value creation relative to the capital invested in the latest years.
MVA Spread Ratio
Mosaic Co., 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 thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Linde plc | ||||||
| Sherwin-Williams Co. | ||||||
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 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added demonstrates substantial volatility throughout the given periods. It began at a positive value of approximately 1.04 billion USD in 2017, declined significantly to around 492 million USD in 2018, then shifted to a negative figure of about -2.71 billion USD in 2019. Subsequently, the MVA recovered strongly to a positive 2.03 billion USD in 2020 and further increased sharply to nearly 5.90 billion USD by the end of 2021. This trend indicates a period of significant value destruction followed by a robust recovery and expansion in market value.
- Invested Capital
- The invested capital remained relatively stable with minor fluctuations across the five years. It increased slightly from approximately 15.02 billion USD in 2017 to a peak near 15.59 billion USD in 2018, followed by a gradual decrease to about 14.65 billion USD in 2020. By 2021, invested capital had increased again to approximately 15.84 billion USD. Overall, invested capital exhibits modest growth with some short-term declines, suggesting cautious capital management or possible asset disposals during certain periods.
- MVA Spread Ratio
- The MVA spread ratio, which reflects the value created over the cost of capital, mirrors the volatility seen in MVA. Starting at 6.9% in 2017, it dropped to 3.15% in 2018 and turned sharply negative at -17.95% in 2019. The ratio then recovered positively to 13.86% in 2020 and surged to a significant 37.26% in 2021. This pattern indicates a severe impairment in value creation during 2019, followed by strong enhancement in profitability and capital efficiency in the subsequent years.
- Summary of Trends
- There is a notable pattern of volatility in the financial performance indicators, with the company experiencing a sharp downturn around 2019, evidenced by negative MVA and MVA spread ratio. Following this period, a strong recovery is observed with significant positive gains through 2020 and 2021. Invested capital remained generally stable with slight variations, which may imply prudent capital allocation or strategic adjustments. The substantial increase in MVA and MVA spread ratio by 2021 suggests improved operational performance and enhanced market confidence during the latest period analyzed.
MVA Margin
Mosaic Co., 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 thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Net sales | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Linde plc | ||||||
| Sherwin-Williams Co. | ||||||
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 ÷ Net sales
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added exhibits notable volatility over the observed period. Starting at approximately 1.04 billion US dollars in 2017, it sharply declined to around 492 million in 2018 and further plummeted into negative territory by the end of 2019, reaching approximately -2.71 billion. However, there was a significant recovery in 2020 with MVA rebounding to about 2.03 billion US dollars, followed by a strong increase in 2021, culminating in nearly 5.90 billion US dollars. This pattern suggests considerable fluctuations in the company's perceived value creation over these years.
- Net Sales
- Net sales demonstrated a generally upward trend across the five-year span. From 7.41 billion US dollars in 2017, sales increased noticeably to 9.59 billion in 2018. A slight decline occurred in 2019 (8.91 billion) and 2020 (8.68 billion), before a marked resurgence in 2021, reaching 12.36 billion US dollars. The increase in the final year more than compensates for the slight decreases in the preceding two years, indicating a strong sales recovery or growth.
- MVA Margin
- The MVA margin mirrors the volatility seen in the MVA values. It began at a solid 14% in 2017, dropped substantially to just over 5% in 2018, then turned negative at approximately -30.41% in 2019. This was followed by a rebound to 23.39% in 2020 and a further increase to nearly 47.78% in 2021. This trend reflects significant fluctuations in value generation relative to net sales, with the margin swinging from positive to negative and back to high positive levels.