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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TJX Cos. Inc. pages available for free this week:
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Debt
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MVA
TJX Cos. Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of TJX
- The market value exhibited an overall upward trend over the five-year period. Starting at approximately $67.6 billion in early 2020, it increased notably to $95.9 billion by early 2021. A slight decline followed in early 2022, with the value dropping to about $85.5 billion. Afterward, the market value resumed its upward trajectory, reaching $100.7 billion in early 2023, then rising significantly to $122.5 billion in early 2024, and further increasing to $152.1 billion by early 2025.
- Invested capital
- The invested capital showed a consistent, moderate growth throughout the period. Starting at around $18.7 billion in early 2020, it increased to $22.4 billion by early 2021, followed by a minor decline to $19.7 billion in early 2022. From early 2022 onward, the invested capital gradually grew, reaching $20.4 billion in early 2023, then $21.1 billion in early 2024, and finally $22.6 billion in early 2025.
- Market value added (MVA)
- The market value added, representing the difference between market value and invested capital, displayed a strong upward trend overall. It rose from approximately $48.9 billion in early 2020 to $73.4 billion in early 2021, followed by a decline to $65.8 billion in early 2022. Subsequently, MVA rebounded to $80.3 billion in early 2023, then grew substantially to $101.4 billion in early 2024, and reached $129.5 billion by early 2025. This pattern indicates significant value creation beyond the invested capital over time.
- Summary
- The data reveals that TJX experienced considerable growth in its market value and market value added over the analyzed periods, despite a temporary dip in early 2022. Invested capital increased steadily but at a much slower pace compared to market value and MVA. The widening gap between market value and invested capital highlights improved market perceptions and value creation. The pronounced rise in market value and MVA, particularly from early 2023 onward, suggests positive investor sentiment and successful capital utilization strategies during this timeframe.
MVA Spread Ratio
TJX Cos. Inc., MVA spread ratio calculation, comparison to benchmarks
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| MVA spread ratio3 | |||||||
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Amazon.com Inc. | |||||||
| Home Depot Inc. | |||||||
| Lowe’s Cos. Inc. | |||||||
Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01).
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.
- Market Value Added (MVA)
- The market value added demonstrates a clear upward trajectory over the periods analyzed. Starting at 48,863 million USD in 2020, it increased substantially to 129,493 million USD by 2025. This represents a nearly threefold increase, indicating significant growth in market valuation relative to prior years. There is a noticeable dip between 2021 and 2022, but the trend quickly recovers and accelerates thereafter.
- Invested Capital
- Invested capital shows a more moderate and steady increase compared to market value added. Beginning at 18,717 million USD in 2020, the figure rises to 22,612 million USD by 2025. Despite some fluctuations, the invested capital consistently grows, reflecting ongoing investment and resource commitment by the company over the timeframe.
- MVA Spread Ratio
- The MVA spread ratio exhibits a pronounced and continuous increase across the periods. Starting at 261.07% in 2020, the ratio climbs steadily, reaching 572.68% in 2025. This indicates a growing differential between market value added and invested capital, suggesting improved efficiency in capital utilization and increasingly higher returns in market value relative to invested funds.
MVA Margin
TJX Cos. Inc., MVA margin calculation, comparison to benchmarks
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Net sales | |||||||
| Add: Increase (decrease) in deferred gift card revenue | |||||||
| Adjusted net sales | |||||||
| Performance Ratio | |||||||
| MVA margin2 | |||||||
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Amazon.com Inc. | |||||||
| Home Depot Inc. | |||||||
| Lowe’s Cos. Inc. | |||||||
Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01).
1 MVA. See details »
2 2025 Calculation
MVA margin = 100 × MVA ÷ Adjusted net sales
= 100 × ÷ =
3 Click competitor name to see calculations.
The data indicate notable fluctuations and growth over the reported periods across all three financial metrics.
- Market Value Added (MVA)
- MVA shows an overall upward trajectory, increasing from 48,863 million US dollars in early 2020 to 129,493 million US dollars by early 2025. Despite a decline observed between 2021 and 2022, where MVA decreased from 73,421 to 65,775 million US dollars, the subsequent years exhibit significant recovery and growth. The most substantial increments occur from 2022 to 2025, reaching the highest recorded value at the end of the period.
- Adjusted Net Sales
- Adjusted net sales experienced volatility, initially dropping from 41,768 million US dollars in 2020 to 32,212 million US dollars in 2021. Following this, a strong recovery is observed, with sales rising sharply to 48,659 million in 2022 and continuing an upward trend to 56,411 million by 2025. This denotes a rebound and gradual increase in sales after the initial decline.
- MVA Margin
- The MVA margin percentage exhibits substantial variation, beginning at 116.99% in 2020, peaking at 227.93% in 2021. This is followed by a notable drop to 135.17% in 2022, before steadily increasing to 229.55% by 2025, the highest margin recorded. This pattern suggests fluctuating efficiency or profitability relative to market value added, with particularly high margins in 2021 and 2025.
Overall, the financial data indicate initial setbacks in 2021, followed by strong recoveries and consistent growth through to 2025. The company’s market value added and adjusted net sales both rebound and surpass initial levels, while the MVA margin exhibits volatility but trends toward improvement, reflecting enhanced value creation relative to sales in later periods.