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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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Selected Financial Data since 2006
- Operating Profit Margin since 2006
- Return on Equity (ROE) since 2006
- Return on Assets (ROA) since 2006
- Price to Operating Profit (P/OP) since 2006
- Analysis of Debt
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MVA
Time Warner Cable Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of TWC
- The market value exhibited a consistent upward trend throughout the analyzed period. Starting at 51,537 million US dollars in 2011, it increased steadily each year, reaching 76,800 million US dollars by the end of 2015. This represents a cumulative growth of approximately 49%, indicating a strong market perception and increasing valuation over time.
- Invested capital
- Invested capital showed relatively minor fluctuations without a clear directional trend. Beginning at 44,961 million US dollars in 2011, it slightly increased to 46,124 million in 2012, followed by a decline to 44,327 million in 2013. Thereafter, it remained relatively stable around 44,929 and 45,332 million in 2014 and 2015 respectively. Overall, invested capital maintained a narrow range, suggesting limited significant reinvestment or capital restructuring during the period.
- Market Value Added (MVA)
- MVA experienced substantial growth over the five years, reflecting an increase in market value beyond invested capital. Starting at 6,576 million US dollars in 2011, MVA nearly doubled in 2012 to 12,045 million and continued to escalate in the subsequent years, reaching 31,468 million by 2015. This ascending trend indicates enhanced value creation for shareholders and an increasing market premium relative to the capital invested.
- Overall Insights
- The data indicates strong value appreciation as evidenced by the rising market value and substantial increase in MVA. In contrast, invested capital remained fairly stable, suggesting that the growth in market value and shareholder wealth was not primarily driven by additional capital investment, but likely due to improved operational performance, market conditions, or investor sentiment. The divergence between modest changes in invested capital and pronounced growth in market valuation underscores effective value generation during the period examined.
MVA Spread Ratio
Time Warner Cable Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Walt Disney Co. | ||||||
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2015 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 consistent upward trend over the five-year period, increasing from 6,576 million US dollars at the end of 2011 to 31,468 million US dollars by the end of 2015. This indicates a significant enhancement in the company's market valuation, with the most notable growth occurring between 2012 and 2013, and continuing steadily thereafter.
- Invested Capital
- Invested capital remained relatively stable throughout the period, with slight fluctuations. It started at 44,961 million US dollars in 2011, rose marginally to 46,124 million in 2012, then decreased to 44,327 million in 2013. In the last two years, invested capital increased slightly again to 44,929 million in 2014 and 45,332 million in 2015. Overall, the invested capital base did not show significant expansion or contraction.
- MVA Spread Ratio
- The MVA spread ratio experienced substantial growth, reflecting a widening gap between market value added and invested capital. Beginning at 14.63% in 2011, it nearly doubled to 26.11% in 2012, then surged to 49.32% in 2013. The ratio continued to rise, reaching 58.56% in 2014 and peaking at 69.42% in 2015. This suggests improving profitability or value generation relative to the capital invested.
MVA Margin
Time Warner Cable Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Revenue | ||||||
| Add: Increase (decrease) in deferred revenue and subscriber-related liabilities | ||||||
| Adjusted revenue | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Walt Disney Co. | ||||||
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 MVA. See details »
2 2015 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
The analysis of the financial data over the five-year period reveals notable positive trends across key performance indicators. The Market Value Added (MVA) demonstrates a significant upward trajectory, increasing from 6,576 million US dollars in 2011 to 31,468 million US dollars in 2015. This represents an almost fivefold increase, suggesting enhanced value creation for shareholders over the period.
Adjusted revenue also reflects consistent growth, albeit at a more moderate pace compared to MVA. Revenue increased from 19,681 million US dollars in 2011 to 23,723 million US dollars in 2015. This steady increment highlights sustained expansion in the company's operational activities and sales.
The MVA margin, expressed as a percentage, shows an even more pronounced growth pattern, advancing from 33.41% in 2011 to 132.65% in 2015. This margin illustrates how effectively the company converts its adjusted revenue into market value added, with efficiency more than tripling during the period examined. Such improvement may indicate enhanced profitability, cost management, or favorable market perceptions contributing to shareholder value.
- Market Value Added (MVA)
- Exhibited sustained and significant growth, increasing nearly fivefold over five years, indicating strong value generation for shareholders.
- Adjusted Revenue
- Experienced steady increases year over year, reflecting consistent business growth and revenue expansion.
- MVA Margin
- Increased substantially, demonstrating improved efficiency in generating market value relative to revenue, pointing to enhanced profitability or capital efficiency.