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
Motorola Solutions Inc., MVA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2019-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
The data demonstrates significant growth in the market value and market value added of the company over the five-year period, alongside a more moderate increase in invested capital.
- Market (fair) value of the company
- The market value increased from approximately 37.6 billion USD at the end of 2019 to about 60.8 billion USD by the end of 2023. Despite a slight decrease from 2019 to 2020, the value showed consistent growth from 2020 onwards, indicating increasing investor confidence and valuation over time.
- Invested capital
- Invested capital rose steadily from nearly 6.9 billion USD in 2019 to roughly 8.9 billion USD in 2023. This gradual increase suggests ongoing investments in the company's operations and assets, though the growth rate is notably slower compared to the market valuation growth.
- Market Value Added (MVA)
- MVA, which measures the difference between market value and invested capital, followed a trajectory similar to the market value. It started at around 30.7 billion USD in 2019, slightly declined in 2020, and then experienced a strong uptrend, reaching 51.8 billion USD in 2023. The growing MVA indicates an expansion in the value the market attributes beyond the invested capital, reflecting improved market perception and potential value creation.
Overall, the data suggests the company has enhanced its market valuation significantly over the observed period while maintaining a stable and incremental increase in invested capital. This pattern reflects positively on the company's ability to generate shareholder value beyond its invested resources.
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MVA Spread Ratio
Motorola Solutions Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 51,836) | 42,818) | 35,971) | 29,975) | 30,705) | |
| Invested capital2 | 8,921) | 8,350) | 7,857) | 6,976) | 6,887) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 581.06% | 512.79% | 457.82% | 429.69% | 445.85% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Apple Inc. | 4,423.16% | 5,157.62% | 5,626.48% | 4,945.07% | — | |
| Arista Networks Inc. | 1,575.63% | 1,226.33% | 1,872.91% | — | — | |
| Cisco Systems Inc. | 279.75% | 214.20% | 329.31% | — | — | |
| Dell Technologies Inc. | 2.11% | 31.48% | 53.40% | — | — | |
| Lumentum Holdings Inc. | 73.48% | 196.72% | 256.49% | — | — | |
| Super Micro Computer Inc. | 466.63% | 91.12% | 50.17% | — | — | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2023 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 51,836 ÷ 8,921 = 581.06%
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. Starting at 30,705 million US dollars in 2019, it slightly decreased in 2020 to 29,975 million, but subsequently increased each year to reach 51,836 million by 2023. This indicates a growing market valuation surpassing the invested capital, reflecting positive investor sentiment and value creation.
- Invested Capital
- Invested capital exhibits a steady increase across the years, moving from 6,887 million US dollars in 2019 to 8,921 million in 2023. The gradual rise in invested capital suggests ongoing investment in the company's operations and resources to support growth initiatives.
- MVA Spread Ratio
- The MVA spread ratio, representing the percentage spread of MVA relative to invested capital, demonstrates a continually increasing trend from 445.85% in 2019 to 581.06% in 2023. This improvement in the ratio indicates an expanding margin by which the company's market value exceeds the invested capital, suggesting enhanced efficiency in value generation and potentially stronger financial performance.
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MVA Margin
Motorola Solutions Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 51,836) | 42,818) | 35,971) | 29,975) | 30,705) | |
| Net sales | 9,978) | 9,112) | 8,171) | 7,414) | 7,887) | |
| Performance Ratio | ||||||
| MVA margin2 | 519.51% | 469.91% | 440.23% | 404.30% | 389.32% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Apple Inc. | 695.76% | 609.53% | 653.71% | 648.08% | — | |
| Arista Networks Inc. | 1,189.41% | 844.93% | 1,097.06% | — | — | |
| Cisco Systems Inc. | 278.31% | 240.26% | 367.17% | — | — | |
| Dell Technologies Inc. | 1.17% | 16.47% | 45.88% | — | — | |
| Lumentum Holdings Inc. | 120.58% | 287.34% | 289.28% | — | — | |
| Super Micro Computer Inc. | 158.10% | 38.75% | 18.09% | — | — | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 MVA. See details »
2 2023 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × 51,836 ÷ 9,978 = 519.51%
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added exhibited a consistent upward trend from 2019 through 2023. Starting at approximately $30.7 billion in 2019, it decreased slightly in 2020 before recovering and increasing substantially in subsequent years, reaching over $51.8 billion by the end of 2023. This indicates an increasing value creation for shareholders over this period.
- Net Sales
- Net sales showed minor volatility with a slight decrease in 2020, likely influenced by external market conditions, followed by steady growth from 2021 onward. Beginning at about $7.9 billion in 2019, net sales dipped to roughly $7.4 billion in 2020 but then increased each year, reaching close to $10.0 billion in 2023. This suggests a recovery and expansion in revenue-generating activities over the last three years.
- MVA Margin
- The MVA margin, which represents the ratio of market value added to net sales, consistently improved year-over-year. It increased from 389.32% in 2019 to 519.51% in 2023. This rising ratio suggests an increasingly effective conversion of sales into market value added, reflecting enhanced operational efficiency or improved market perceptions relative to sales.
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