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
ONEOK Inc., MVA calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2018-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of ONEOK
- The market value exhibited a fluctuating trend over the five-year period. It increased significantly from approximately 36.1 billion USD at the end of 2018 to around 44.5 billion USD in 2019. This was followed by a notable decline to about 36.7 billion USD in 2020. Subsequently, the market value rebounded in 2021 to approximately 44.2 billion USD before experiencing a slight decrease to around 42.1 billion USD in 2022.
- Invested capital
- The invested capital demonstrated a generally upward trend throughout the period. Starting at roughly 16.4 billion USD at the end of 2018, it increased consistently to reach approximately 22.1 billion USD by the end of 2022. The growth, however, was more moderate between 2020 and 2021, with a slight decrease observed from 21.6 billion USD in 2020 to 21.4 billion USD in 2021, before rising again in 2022.
- Market value added (MVA)
- Market value added showed considerable variation across the years. It peaked at approximately 24.6 billion USD in 2019, reflecting strong market confidence relative to invested capital. This was followed by a substantial decline to about 15.1 billion USD in 2020, indicating a significant reduction in market value relative to capital invested. In 2021, MVA increased again to roughly 22.8 billion USD, suggesting recovery in market sentiment, though it slightly fell to around 20.0 billion USD in 2022.
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MVA Spread Ratio
ONEOK Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | 20,009,113) | 22,780,678) | 15,100,537) | 24,600,991) | 19,693,999) | |
| Invested capital2 | 22,064,152) | 21,409,739) | 21,625,131) | 19,885,058) | 16,415,008) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 90.69% | 106.40% | 69.83% | 123.72% | 119.98% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Chevron Corp. | 57.71% | 54.49% | — | — | — | |
| ConocoPhillips | 93.55% | 86.17% | — | — | — | |
| Exxon Mobil Corp. | 67.23% | 42.25% | — | — | — | |
Based on: 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), 10-K (reporting date: 2018-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2022 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 20,009,113 ÷ 22,064,152 = 90.69%
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added demonstrates notable fluctuations over the observed periods. It increased from approximately $19.7 billion at the end of 2018 to a peak near $24.6 billion in 2019. Subsequently, there was a considerable decline in 2020 to around $15.1 billion, followed by a recovery in 2021 reaching about $22.8 billion. However, in 2022, MVA decreased again to roughly $20.0 billion. This pattern indicates exposure to market volatility or company-specific events impacting the market valuation.
- Invested Capital
- Invested capital showed a continuous upward trend across the five-year span. Beginning at approximately $16.4 billion in 2018, it increased steadily each year, reaching around $22.1 billion by the end of 2022. This consistent growth suggests ongoing investment or asset accumulation within the company.
- MVA Spread Ratio
- The MVA spread ratio, which reflects the premium of market value added relative to invested capital, started high at nearly 120% in 2018 and slightly increased to around 124% in 2019. This ratio dropped significantly in 2020 to about 70%, indicating a period of diminished value creation relative to the capital invested. It then improved in 2021 to roughly 106%, followed by a decrease in 2022 to approximately 91%. Overall, the ratio confirms a volatile capacity for value addition over capital investment, with a notably weaker performance during 2020 and a partial recovery afterward.
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MVA Margin
ONEOK Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | 20,009,113) | 22,780,678) | 15,100,537) | 24,600,991) | 19,693,999) | |
| Revenues | 22,386,892) | 16,540,309) | 8,542,242) | 10,164,367) | 12,593,196) | |
| Performance Ratio | ||||||
| MVA margin2 | 89.38% | 137.73% | 176.77% | 242.03% | 156.39% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Chevron Corp. | 51.99% | 67.80% | — | — | — | |
| ConocoPhillips | 90.01% | 143.57% | — | — | — | |
| Exxon Mobil Corp. | 50.09% | 41.64% | — | — | — | |
Based on: 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), 10-K (reporting date: 2018-12-31).
1 MVA. See details »
2 2022 Calculation
MVA margin = 100 × MVA ÷ Revenues
= 100 × 20,009,113 ÷ 22,386,892 = 89.38%
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added exhibited significant fluctuations over the five-year period. It increased notably from approximately 19.7 billion US dollars in 2018 to about 24.6 billion US dollars in 2019. However, in 2020, there was a sharp decline to roughly 15.1 billion US dollars, followed by a recovery in 2021 to approximately 22.8 billion US dollars. In 2022, the MVA decreased again to around 20.0 billion US dollars. This pattern indicates volatility likely influenced by external economic factors and market conditions.
- Revenues
- Revenues showed a declining trend in the first three years, dropping from nearly 12.6 billion US dollars in 2018 to about 8.5 billion US dollars in 2020. From 2020 onwards, there was a strong recovery, with revenues increasing substantially to approximately 16.5 billion US dollars in 2021 and further rising to nearly 22.4 billion US dollars in 2022. This recovery suggests a rebound in operational performance or market demand starting in 2021.
- MVA Margin
- The MVA margin also exhibited considerable variability. It peaked in 2019 at over 242%, which suggests a period of very high market value addition relative to revenues. Following that peak, the margin declined sharply in 2020 to about 177%, then decreased further to approximately 138% in 2021 and dropped to its lowest point of around 89% in 2022. This declining margin reflects a diminishing proportion of market value added relative to revenues, despite revenues increasing significantly in the later years.
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