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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- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Current Ratio since 2005
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Aggregate Accruals
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MVA
Trane Technologies plc, MVA calculation
US$ in thousands
Based on: 10-K (reporting date: 2022-12-31), 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).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Trane Technologies
- The market value of the company showed a consistent upward trend over the observed period. Starting from approximately $29.96 billion in 2018, it increased significantly to about $47.04 billion by the end of 2022. This reflects a steady appreciation in market perception and investor confidence over the five years.
- Invested capital
- Invested capital demonstrated some fluctuations without a clear directional trend. It rose from approximately $13.68 billion in 2018 to a peak of $15.64 billion in 2019, followed by a decline to $13.85 billion in 2020, then further reduction to $13.35 billion in 2021. A slight increase was observed in 2022 reaching approximately $13.52 billion. Overall, the invested capital remained relatively stable around the $13-15 billion range throughout the period.
- Market value added (MVA)
- There was a strong and consistent increase in market value added throughout the period. MVA grew from approximately $16.27 billion in 2018 to about $33.52 billion in 2022, more than doubling over five years. This growth suggests increasing value creation above the invested capital, indicative of effective management and favorable market conditions.
MVA Spread Ratio
Trane Technologies plc, MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
Based on: 10-K (reporting date: 2022-12-31), 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).
1 MVA. See details »
2 Invested capital. See details »
3 2022 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 consistent upward trend over the observed five-year period. Starting from approximately 16.3 billion US dollars at the end of 2018, it increased steadily each year, reaching over 33.5 billion US dollars by the end of 2022. This represents more than a doubling of value, indicating growing market perception of the company's value above its invested capital.
- Invested Capital
- Invested capital displayed a relatively stable pattern over the years but with some fluctuations. It increased from about 13.7 billion US dollars at the end of 2018 to a peak near 15.6 billion US dollars in 2019. Following this, the invested capital decreased over the next two years, dropping to nearly 13.4 billion US dollars by the end of 2021 before experiencing a slight increase to approximately 13.5 billion US dollars in 2022. Overall, invested capital remained within a moderate range without extreme volatility.
- MVA Spread Ratio
- The MVA spread ratio exhibited a clear upward trajectory throughout the period. Starting at roughly 119% at the end of 2018, the ratio increased each year, culminating in nearly 248% by the end of 2022. This indicates that the company's market value was growing at a faster rate relative to its invested capital, reflecting an improving return on invested resources and possibly enhanced operational efficiency or investor confidence.
MVA Margin
Trane Technologies plc, MVA margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Net revenues | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted net revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
Based on: 10-K (reporting date: 2022-12-31), 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).
1 MVA. See details »
2 2022 Calculation
MVA margin = 100 × MVA ÷ Adjusted net revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added displayed a consistent upward trend from 2018 through 2022. Starting at approximately 16.3 billion US dollars in 2018, it increased significantly to about 25.7 billion in 2019, with continuous growth observed in each subsequent year, reaching about 33.5 billion US dollars in 2022. This suggests a strengthening market valuation and enhanced shareholder value over the period.
- Adjusted Net Revenues
- Adjusted net revenues experienced fluctuations during the observed period. There was an increase from around 15.7 billion US dollars in 2018 to approximately 16.6 billion in 2019. However, a noticeable decline occurred in 2020, with revenues dropping to about 12.5 billion US dollars. Following this dip, revenues recovered steadily, rising to approximately 14.1 billion in 2021 and further to nearly 16.0 billion US dollars in 2022. The variation possibly reflects external market conditions affecting earnings, followed by a recovery phase.
- MVA Margin
- The MVA margin exhibited substantial volatility and growth over the years. It started at 103.86% in 2018, increased sharply to 154.91% in 2019, and peaked at 221.9% in 2020. Despite a slight decline after 2020, the margin remained elevated, with 207.61% in 2021 and 209.53% in 2022. The peak in 2020 juxtaposed with the dip in adjusted net revenues suggests improved efficiency or other favorable factors contributing to market value beyond revenue alone.