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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MVA
Stryker Corp., MVA calculation
US$ in millions
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 Stryker
- The market value exhibited a consistent upward trend from 2017 to 2021. Starting at 62,945 million US dollars in 2017, it increased annually, reaching 108,564 million US dollars by the end of 2021. The growth decelerated slightly between 2020 and 2021, with a marginal increase compared to prior years.
- Invested capital
- Invested capital showed growth from 17,502 million US dollars in 2017 to a peak of 27,132 million US dollars in 2020. However, there was a slight decline in 2021, falling to 26,516 million US dollars. This indicates an initial expansion of capital investments over the first four years, followed by a minor reduction in the last year reported.
- Market value added (MVA)
- Market value added increased steadily throughout the period, starting at 45,443 million US dollars in 2017 and reaching 82,048 million US dollars in 2021. This reflects a growing premium of market value over invested capital, signifying enhanced shareholder value creation over time. The rate of increase showed slight moderation in the final year, consistent with the patterns observed in market value.
MVA Spread Ratio
Stryker Corp., 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 millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
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.
The analyzed financial data reveals a consistent upward trajectory in key performance metrics over the five-year period from 2017 to 2021.
- Market Value Added (MVA)
- The MVA exhibits a continuous increase each year, starting at approximately $45.4 billion in 2017 and reaching over $82 billion by 2021. This upward trend indicates a significant enhancement in the company's market valuation beyond the invested capital, reflecting increased investor confidence and value creation.
- Invested Capital
- Invested capital shows an overall growth from about $17.5 billion in 2017 to a peak of roughly $27.1 billion in 2020. However, there is a slight decrease in 2021 to around $26.5 billion. The general increase suggests sustained investment in the company's operations and assets, while the slight drop in 2021 may indicate divestitures, efficiency gains, or capital optimization efforts.
- MVA Spread Ratio
- The MVA spread ratio, representing the return generated over invested capital, remains robust and consistently above 250% throughout the period. Starting near 260% in 2017, it peaks over 310% in 2021, indicating that the company’s ability to generate value relative to its invested capital has improved, signaling operational efficiency and strong market performance.
Overall, the data reflects strong value creation with growing market value added outpacing the growth of invested capital, supported by an improving MVA spread ratio. This pattern suggests effective management of capital investments and a positive market perception surrounding the company's financial performance during the stated period.
MVA Margin
Stryker Corp., MVA margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Net sales | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
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 ÷ Net sales
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added shows a consistent upward trend from 2017 to 2021. Starting at 45,443 million US dollars in 2017, it increased to 56,571 million in 2018, then 70,559 million in 2019, followed by 80,785 million in 2020, and finally reaching 82,048 million in 2021. This steady growth indicates an increasing market perception of the company's value over the five-year period.
- Net Sales
- Net sales generally increased over the period, starting at 12,444 million US dollars in 2017 and reaching 17,108 million in 2021. There was a slight dip in 2020 where sales decreased from 14,884 million in 2019 to 14,351 million. However, sales recovered strongly in 2021, surpassing previous years. Overall, the sales trend reflects growth with a minor interruption in 2020.
- MVA Margin
- The MVA margin demonstrated a rising trend from 2017 until 2020, increasing from 365.18% to a peak of 562.92%. However, in 2021, it declined significantly to 479.59%. This suggests that while the company’s market value added relative to its sales improved considerably for most of the period, the efficiency or return in terms of market value added relative to sales experienced a setback in the final year reviewed.