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: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value (EV)
- Net Profit Margin since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
- Aggregate Accruals
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MVA
RTX Corp., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Fair value of debt. See details »
2 Invested capital. See details »
The period under review demonstrates significant fluctuations in market value and, consequently, market value added. Initial declines in both market value and invested capital are followed by substantial growth in later years. A detailed examination of these trends is presented below.
- Market Value
- The market value of the entity experienced a decrease from US$180,971 million in 2021 to US$166,928 million in 2023. However, a strong recovery commenced in 2024, with the market value reaching US$214,310 million, and continuing to rise significantly to US$305,864 million by 2025. This represents a substantial increase over the period.
- Invested Capital
- Invested capital exhibited a relatively stable pattern with a slight downward trend from US$111,815 million in 2021 to US$107,593 million in 2024. A modest increase to US$109,085 million was observed in 2025, but the overall change remains minimal compared to the fluctuations in market value.
- Market Value Added (MVA)
- Market value added mirrored the trend in market value, declining from US$69,156 million in 2021 to US$58,485 million in 2023. A dramatic increase in MVA began in 2024, reaching US$106,717 million, and accelerating to US$196,779 million in 2025. This substantial growth in MVA suggests the entity is generating significant value for its investors in the later years of the period.
The divergence between the relatively stable invested capital and the fluctuating market value indicates that changes in investor expectations and market sentiment are strongly influencing the entity’s valuation. The significant increase in MVA from 2024 onwards suggests a positive shift in these expectations, potentially driven by improved performance or future growth prospects. The period from 2021 to 2023 shows a contraction in value creation, while the subsequent period demonstrates a strong recovery and expansion.
MVA Spread Ratio
RTX Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 MVA. See details »
2 Invested capital. See details »
3 2025 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited a fluctuating pattern over the five-year period. Initially, a decline in MVA was observed, followed by substantial increases in later years. Invested Capital demonstrated relative stability throughout the period. The MVA spread ratio, calculated as MVA as a percentage of Invested Capital, mirrored the trend in MVA, showing a significant upward trajectory in the final two years.
- Market Value Added (MVA)
- MVA decreased from US$69,156 million in 2021 to US$58,485 million in 2023, representing a contraction over those two years. However, a considerable recovery and expansion occurred in 2024 and 2025, with MVA reaching US$106,717 million and subsequently US$196,779 million, respectively. This indicates a strengthening of the company’s ability to generate value for its investors in the latter part of the period.
- Invested Capital
- Invested Capital remained relatively consistent, fluctuating modestly between US$107,593 million and US$111,815 million. The slight decrease from 2021 to 2023 was minimal, and a small increase was noted in 2025. This suggests a stable capital base throughout the observed timeframe.
- MVA Spread Ratio
- The MVA spread ratio followed a similar pattern to MVA. It decreased from 61.85% in 2021 to 53.93% in 2023, reflecting the decline in MVA relative to Invested Capital. A dramatic increase was then observed, with the ratio rising to 99.19% in 2024 and reaching 180.39% in 2025. This substantial increase signifies that the company’s value creation, as measured by MVA, grew at a significantly faster rate than its invested capital in the final two years of the period.
The divergence between the trend in MVA and Invested Capital, particularly evident in the MVA spread ratio’s increase in 2024 and 2025, suggests improved efficiency in capital allocation and value generation. The company appears to have become more effective at translating invested capital into market value during those years.
MVA Margin
RTX Corp., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Net sales | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 MVA. See details »
2 2025 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × ÷ =
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited a fluctuating pattern over the five-year period. Initially, a decline in MVA was observed, followed by substantial growth in later years. Net sales demonstrated a consistent upward trend throughout the period. Consequently, the MVA margin, calculated as MVA relative to net sales, also displayed significant variability.
- Market Value Added (MVA)
- The MVA began at US$69,156 million in 2021, decreasing to US$64,916 million in 2022 and further to US$58,485 million in 2023. A significant increase was then recorded, with MVA reaching US$106,717 million in 2024 and culminating in US$196,779 million in 2025. This indicates a substantial creation of shareholder value in the latter part of the period.
- Net Sales
- Net sales increased steadily from US$64,388 million in 2021 to US$67,074 million in 2022, US$68,920 million in 2023, US$80,738 million in 2024, and finally to US$88,603 million in 2025. This consistent growth suggests a positive trend in revenue generation.
- MVA Margin
- The MVA margin began at 107.41% in 2021, decreasing to 96.78% in 2022 and 84.86% in 2023, mirroring the decline in MVA relative to sales. A dramatic increase was then observed, with the margin rising to 132.18% in 2024 and reaching 222.09% in 2025. This substantial increase in the MVA margin suggests that the company is generating significantly more value for shareholders relative to its sales in the later years of the period.
The divergence between the declining MVA in the initial years and the increasing net sales suggests potential issues with profitability or efficiency during those periods. However, the subsequent strong growth in both MVA and MVA margin indicates a successful turnaround and improved value creation in more recent years.