Market Value Added (MVA)
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
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
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
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. |