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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- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Return on Equity (ROE) since 2005
- Price to Earnings (P/E) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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MVA
Schlumberger Ltd., MVA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
The analysis of the financial data reveals several notable trends over the five-year period. From December 31, 2020, to December 31, 2024, there is a significant fluctuation in the market (fair) value of the company. The market value increased sharply from 47,784 million US dollars in 2020 to a peak of 90,682 million US dollars in 2022. Subsequently, it declined to 70,605 million US dollars by the end of 2024. This pattern suggests an initial phase of strong market confidence and valuation appreciation followed by a period of decreasing market value.
Invested capital shows a relatively steady upward trend throughout the same period, rising from 33,428 million US dollars in 2020 to 39,383 million US dollars in 2024. This gradual increase indicates continuous investment or capital deployment in the business, although the growth rate is moderate compared to the fluctuations observed in the market value.
Market value added (MVA), which represents the excess market value over invested capital, also demonstrates volatility in line with market value trends. It rose significantly from 14,356 million US dollars in 2020 to a high of 56,751 million US dollars in 2022, reflecting periods of heightened market optimism and perceived value creation. However, it declined thereafter to 31,222 million US dollars by the end of 2024, aligning with the downward movement in market fair value.
Overall, the data indicate a cyclical pattern in market valuation, with peak investor confidence and valuation in 2022 followed by a reduction, possibly due to market adjustments or changes in external conditions. In contrast, the invested capital trend implies steady capital commitments. The divergence between market value and invested capital, as reflected in the MVA, underscores shifting market perceptions regarding the company's value creation capacity over time.
MVA Spread Ratio
Schlumberger Ltd., MVA spread ratio calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
The financial data reveals several key trends regarding the company's market value added (MVA), invested capital, and MVA spread ratio over the five-year period.
- Market Value Added (MVA)
- MVA showed a marked upward trajectory from 14,356 million US dollars in 2020 to a peak of 56,751 million US dollars in 2022, indicating significant value creation during this period. However, this upward trend did not continue, as MVA declined to 48,191 million US dollars in 2023 and further decreased to 31,222 million US dollars in 2024. This decline suggests diminishing value creation or possibly external market pressures impacting valuation in the latter years.
- Invested Capital
- Invested capital exhibited a gradual increase over the five years, starting at 33,428 million US dollars in 2020 and rising steadily to 39,383 million US dollars in 2024. The growth in invested capital indicates continued investment in the company’s assets and operations, which generally supports the company’s ability to generate future returns.
- MVA Spread Ratio
- The MVA spread ratio, which reflects the efficiency of invested capital in generating market value added, showed significant fluctuation. It started at 42.94% in 2020, increased sharply to reach a peak of 167.25% in 2022, and then declined to 79.28% by 2024. The peak in 2022 corresponds with the highest MVA figure and suggests optimal capital efficiency that year. The subsequent decline indicates a reduction in profitability or capital market perception regarding the company’s ability to generate returns from its invested capital.
In summary, the company demonstrated strong value creation and capital efficiency up to 2022, followed by a notable decline in these metrics in the subsequent years. Despite the continued growth in invested capital, the decreasing MVA and spread ratio suggest challenges in translating investments into proportional market value gains in the most recent periods.
MVA Margin
Schlumberger Ltd., MVA margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Revenue | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Revenue
= 100 × ÷ =
The financial data reveals several notable trends over the five-year period from the end of 2020 through 2024. The market value added (MVA) displayed significant fluctuations, initially increasing sharply from 14,356 million US dollars in 2020 to a peak of 56,751 million in 2022, before declining to 31,222 million by the end of 2024. This pattern suggests a strong period of value creation culminating around 2022, followed by a reduction in market value added in subsequent years.
Revenue experienced a generally positive trend, showing growth throughout the period. Starting at 23,601 million US dollars in 2020, revenue slightly decreased to 22,929 million in 2021 but then climbed steadily year over year to 36,289 million by 2024. This steady increase indicates an expanding business scale or improving sales performance in the latter years.
The MVA margin, which indicates the market value added as a percentage of revenue, mirrored the volatility seen in absolute MVA values. It reached its highest percentage of 202.02% in 2022, reflecting an exceptionally high return relative to revenue. However, following this peak, the margin contracted to 86.04% by 2024, suggesting a diminishing rate of value creation relative to revenue despite continued revenue growth.
- Market Value Added (MVA)
- Sharp increase from 2020 to 2022 followed by a notable decline through 2024.
- Revenue
- Slight dip in 2021, then consistent year-on-year growth to highest level in 2024.
- MVA Margin
- High volatility with peak in 2022, thereafter a decreasing trend, indicating reduced efficiency or market valuation relative to revenue.
Overall, the data depicts a company with improving top-line performance but a less stable market valuation growth after 2022, highlighting a potential divergence between operational growth and market perception or profitability dynamics.