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
United Parcel Service Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Fair value of debt. See details »
2 Invested capital. See details »
The period under review demonstrates a consistent decline in the market value of the company, coupled with a gradual increase in invested capital. Consequently, market value added (MVA) exhibits a significant downward trend, though stabilization appears possible towards the end of the observed timeframe.
- Market Value Trend
- The market value experienced a substantial decrease from US$210,285 million in 2021 to US$123,031 million in 2024. A slight recovery is noted in 2025, with the market value reaching US$126,149 million. This suggests potential stabilization, but remains significantly below the value recorded in 2021.
- Invested Capital Trend
- Invested capital shows a steady, albeit moderate, increase throughout the period, rising from US$44,396 million in 2021 to US$50,644 million in 2025. This indicates continued investment in the business despite the declining market value.
- Market Value Added (MVA) Trend
- MVA mirrors the decline in market value, decreasing from US$165,889 million in 2021 to US$74,881 million in 2024. Similar to the market value, MVA shows a marginal increase in 2025, reaching US$75,505 million. This suggests that while value creation has diminished, the rate of decline may be slowing.
The consistent increase in invested capital alongside the decreasing MVA suggests that investments are not translating into equivalent market value gains during this period. The slight recovery in both market value and MVA in 2025 warrants further investigation to determine if this represents a genuine turning point or a temporary fluctuation.
MVA Spread Ratio
United Parcel Service Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| Union Pacific Corp. | ||||||
| United Airlines Holdings Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
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.
The information presents a declining trend in Market Value Added (MVA) alongside increasing Invested Capital over the five-year period. Consequently, the MVA spread ratio demonstrates a significant and consistent decrease.
- Market Value Added (MVA)
- MVA experienced a substantial decrease from US$165,889 million in 2021 to US$104,957 million in 2023. This decline continued, reaching US$74,881 million in 2024. A slight increase to US$75,505 million is observed in 2025, but remains considerably lower than the 2021 value. The overall trend indicates diminishing value creation relative to invested capital.
- Invested Capital
- Invested capital consistently increased throughout the period, moving from US$44,396 million in 2021 to US$50,644 million in 2025. This upward trajectory contrasts with the declining MVA, suggesting that increases in capital deployment are not translating into proportional gains in market value.
- MVA Spread Ratio
- The MVA spread ratio, which reflects the relationship between MVA and invested capital, exhibits a pronounced downward trend. Starting at 373.66% in 2021, the ratio decreased to 287.06% in 2022, 230.88% in 2023, and further to 155.52% in 2024. While the rate of decline slows slightly in 2025, the ratio settles at 149.09%. This consistent reduction indicates a diminishing return on invested capital from a market perspective.
The combination of decreasing MVA and increasing invested capital, as reflected in the declining MVA spread ratio, suggests a potential erosion of shareholder value creation efficiency. Further investigation into the underlying drivers of these trends would be warranted.
MVA Margin
United Parcel Service Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Revenue | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| Union Pacific Corp. | ||||||
| United Airlines Holdings Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 MVA. See details »
2 2025 Calculation
MVA margin = 100 × MVA ÷ Revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited a declining trend from 2021 to 2024, followed by a slight increase in 2025. Simultaneously, revenue experienced an initial increase before declining over the subsequent three years. The MVA margin, reflecting the MVA as a percentage of revenue, mirrored the MVA trend, demonstrating a substantial decrease followed by a modest recovery.
- Market Value Added (MVA)
- The MVA began at US$165,889 million in 2021, representing the value created for shareholders above the cost of capital. A consistent decrease was observed, falling to US$74,881 million by 2024. In 2025, the MVA experienced a slight increase to US$75,505 million, but remained significantly below the 2021 level. This suggests a diminishing ability to generate value for investors over the period, with a potential stabilization in the most recent year.
- Revenue
- Revenue increased from US$97,287 million in 2021 to US$100,338 million in 2022. However, from 2022 onward, revenue decreased each year, reaching US$88,661 million in 2025. This contraction in revenue may be a contributing factor to the decline in MVA, indicating potential challenges in maintaining sales volume or pricing power.
- MVA Margin
- The MVA margin started at a high of 170.51% in 2021, indicating a substantial value creation relative to revenue. The margin decreased significantly to 82.22% by 2024, reflecting the combined effect of declining MVA and decreasing revenue. A slight improvement to 85.16% was noted in 2025, coinciding with the modest increase in MVA. The overall downward trend in the MVA margin suggests a reduced efficiency in translating revenue into shareholder value.
The correlation between the declining MVA and revenue, coupled with the decreasing MVA margin, suggests a potential weakening in the company’s financial performance and value creation capabilities between 2021 and 2024. The slight recovery in 2025 warrants further investigation to determine if this represents a sustainable trend.