Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Raytheon Technologies Corp. (NYSE:RTX)

Market Value Added (MVA)

Advanced level

Market value added (MVA) is the difference between a firms’s 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

Raytheon Technologies Corp., MVA calculation

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Fair value of debt1 38,926  48,651  45,544  29,598  25,730 
Operating lease liability 1,998  2,688  2,579  1,976  1,815 
Market value of common equity 110,147  135,161  104,030  99,996  88,717 
Preferred Stock, $1 par value; none issued or outstanding —  —  —  —  — 
Redeemable noncontrolling interest 32  95  109  131  296 
Noncontrolling interest 1,689  2,457  2,164  1,811  1,590 
Less: Marketable securities held in trusts 881  57  51  64  987 
Market (fair) value of RTC 151,911  188,995  154,376  133,448  117,161 
Less: Invested capital2 115,959  103,603  101,040  69,280  63,337 
MVA 35,952  85,392  53,335  64,168  53,824 

Based on: 10-K (filing date: 2021-02-08), 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-09).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA Raytheon Technologies Corp.’s market (fair) value less invested capital. Raytheon Technologies Corp.’s MVA increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

MVA Spread Ratio

Raytheon Technologies Corp., MVA spread ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Market value added (MVA)1 35,952  85,392  53,335  64,168  53,824 
Invested capital2 115,959  103,603  101,040  69,280  63,337 
Performance Ratio
MVA spread ratio3 31.00% 82.42% 52.79% 92.62% 84.98%
Benchmarks
MVA Spread Ratio, Competitors4
Boeing Co. 257.78% 489.80% 685.49% 713.58% 347.05%
Lockheed Martin Corp. 284.59% 441.62% 302.66% 439.00% 356.08%
Northrop Grumman Corp. 156.23% 243.75% 159.43% 176.10% 184.20%

Based on: 10-K (filing date: 2021-02-08), 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-09).

1 MVA. See details »

2 Invested capital. See details »

3 2020 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 35,952 ÷ 115,959 = 31.00%

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. Raytheon Technologies Corp.’s MVA spread ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

MVA Margin

Raytheon Technologies Corp., MVA margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Market value added (MVA)1 35,952  85,392  53,335  64,168  53,824 
Net sales 56,587  77,046  66,501  59,837  57,244 
Performance Ratio
MVA margin2 63.53% 110.83% 80.20% 107.24% 94.03%
Benchmarks
MVA Margin, Competitors3
Boeing Co. 211.11% 227.39% 210.62% 201.78% 91.56%
Lockheed Martin Corp. 122.08% 189.58% 140.41% 181.14% 149.91%
Northrop Grumman Corp. 113.10% 169.32% 127.54% 187.05% 127.27%

Based on: 10-K (filing date: 2021-02-08), 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-09).

1 MVA. See details »

2 2020 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × 35,952 ÷ 56,587 = 63.53%

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. Raytheon Technologies Corp.’s MVA margin ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.