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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- Income Statement
- Statement of Comprehensive Income
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Selected Financial Data since 2005
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
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MVA
Royal Caribbean Cruises Ltd., MVA calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2017-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Royal Caribbean
- The market value exhibited an overall upward trend from 2017 to 2020, increasing from approximately 36.15 billion USD to a peak of 44.43 billion USD in 2020. However, this was followed by a decline in 2021 to around 42.24 billion USD. This suggests strong market valuation growth until 2020, with a slight correction or stabilization in 2021.
- Invested capital
- Invested capital consistently increased from 18.11 billion USD in 2017 to a high of 28.44 billion USD in 2020, indicating ongoing capital investment or acquisition efforts. In 2021, invested capital decreased to about 26.32 billion USD, marking a reduction but still maintaining a higher level than the pre-2019 values. This could reflect asset disposals, write-downs, or capital reallocation.
- Market value added (MVA)
- MVA experienced a declining trend from 18.04 billion USD in 2017 down to 7.54 billion USD in 2019, indicating a contraction in the company's market value relative to invested capital. There was a significant rebound in 2020, with MVA increasing sharply to nearly 16.0 billion USD, maintaining a similar level into 2021 at approximately 15.91 billion USD. This recovery suggests improved market perception of value creation despite increased invested capital.
- General observations
- While invested capital rose steadily until 2020 before slightly declining, the market value showed strong growth until 2020 but decreased in 2021. The MVA contraction prior to 2020 followed by a strong rebound likely indicates shifts in market sentiment or operational performance. The divergence between invested capital and market value trends in 2021 may highlight market uncertainties or adjustments in asset valuations.
MVA Spread Ratio
Royal Caribbean Cruises Ltd., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
Based on: 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), 10-K (reporting date: 2017-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2021 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added shows a declining trend from 2017 to 2019, decreasing significantly from approximately 18.0 billion to 7.5 billion US dollars. In 2020, the value rebounded strongly to nearly 16.0 billion, maintaining a similar level in 2021, indicating partial recovery after a notable decline.
- Invested Capital
- Invested capital rose steadily from about 18.1 billion US dollars in 2017 to a peak of 28.4 billion in 2020, before decreasing slightly to 26.3 billion in 2021. This suggests ongoing capital investments during the period, with a slight retrenchment following the 2020 peak.
- MVA Spread Ratio
- The MVA spread ratio, reflecting the market's return over invested capital, exhibited a pronounced decrease from 99.62% in 2017 to a low of 31.21% in 2019. Subsequently, it improved to 56.23% in 2020 and slightly increased to 60.46% in 2021. Despite the recovery, the ratio remained considerably below the 2017 level, indicating a reduced market premium over invested capital in recent years.
- Overall Analysis
- The data indicates a period of declining market value and profitability relative to invested capital through 2019, followed by a recovery phase starting in 2020. While invested capital increased consistently until 2020, the market value added demonstrates volatility, likely reflecting external or industry-specific challenges impacting market perceptions. The MVA spread ratio's decline and partial recovery further emphasize fluctuating returns from invested resources, with recent figures suggesting cautious optimism but not a full restoration to earlier performance levels.
MVA Margin
Royal Caribbean Cruises Ltd., MVA margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
Based on: 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), 10-K (reporting date: 2017-12-31).
1 MVA. See details »
2 2021 Calculation
MVA margin = 100 × MVA ÷ Revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The MVA exhibited a declining trend from 2017 to 2019, falling from approximately 18.0 billion US dollars to about 7.5 billion US dollars. However, it experienced a significant recovery in 2020, rising to nearly 16.0 billion US dollars, and remained relatively stable in 2021 at approximately 15.9 billion US dollars. This suggests a notable decline in perceived market value during the initial years followed by a substantial rebound.
- Revenues
- Revenues showed a growth trend from 2017 through 2019, increasing steadily from about 8.8 billion US dollars to nearly 11.0 billion US dollars. In stark contrast, 2020 and 2021 witnessed a drastic drop in revenue levels to roughly 2.2 billion and then to 1.5 billion US dollars, respectively. This sharp decline indicates significant operational challenges or market disruptions during these later years.
- MVA Margin
- The MVA margin percentage demonstrated a downward trend from 2017 to 2019, decreasing from approximately 205.54% to 68.88%. Subsequently, there was a pronounced surge in 2020 to 723.93%, followed by an even greater increase in 2021 to 1038.73%. The steep increase in MVA margin during the final two years occurs despite the falling revenue, indicating a disproportionate relationship between market valuation and revenue, possibly due to changes in investor expectations or external financial factors.
- Overall Analysis
- The combination of declining revenues in the last two years and the recovery in MVA suggests that market perceptions and valuations were not directly aligned with operational performance. The substantial volatility observed across all metrics highlights an unusual financial period, potentially reflecting the influence of external shocks or strategic business shifts during these years.