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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- Balance Sheet: Assets
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value (EV)
- Current Ratio since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
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MVA
RTX Corp., MVA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
The financial data for RTX Corp. over the five-year period from 2020 to 2024 reveals several notable trends in market value, invested capital, and market value added (MVA).
- Market (fair) value of RTX
- The market value experienced growth from 2020 to 2021, increasing from approximately $151.9 billion to $181.0 billion. However, this was followed by a decline over the next two years, dropping to about $174.9 billion in 2022 and further to $166.9 billion in 2023. In 2024, there was a significant rebound, with the market value rising sharply to $214.3 billion, the highest level within the observed period.
- Invested capital
- The invested capital shows a gradual but consistent decline throughout the five years. Starting at roughly $115.6 billion in 2020, it decreased slightly each year, reaching about $111.3 billion by the end of 2024. This indicates a reduction of the company's invested resources or capital base over the period examined.
- Market value added (MVA)
- The MVA trend reflects market perception of value creation beyond invested capital. It rose substantially from $36.3 billion in 2020 to $66.3 billion in 2021, followed by a decrease to $61.5 billion in 2022 and further down to $54.9 billion in 2023. Notably, in 2024, the MVA surged to $103.0 billion, almost doubling the previous year's figure and indicating a significant increase in shareholder value relative to invested capital.
Overall, the trends suggest that while invested capital has been slightly declining, market valuation experienced some volatility with a dip in 2022 and 2023 but then a strong recovery in 2024. The marked increase in MVA in the final year points to improved market confidence and value creation, potentially driven by factors increasing the company’s perceived worth beyond its invested capital base.
MVA Spread Ratio
RTX Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| 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. | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2024 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 fluctuating trend over the analyzed periods. Starting from 36,314 million US dollars in 2020, it increased significantly to 66,284 million in 2021. However, there was a decline over the next two years, with values falling to 61,542 million in 2022 and then further to 54,891 million in 2023. A substantial rebound occurred in 2024, with MVA reaching 102,982 million US dollars, the highest figure in the observed timeframe.
- Invested Capital
- Invested capital exhibits a gradual decreasing pattern throughout the years. It began at 115,597 million US dollars in 2020 and consistently declined year-on-year to 111,328 million US dollars by 2024. The reduction is relatively modest but steady, reflecting a possible tightening in capital investment or asset base management over time.
- MVA Spread Ratio
- The MVA spread ratio indicates relative value creation per unit of invested capital and mirrors the dynamic seen in market value added. The ratio started at 31.41% in 2020 and more than doubled to 57.8% in 2021, indicating improved performance. It then decreased to 54.3% in 2022 and further to 48.99% in 2023, following the decline in market value added. In 2024, the ratio sharply rose to 92.5%, reflecting a significant increase in market value relative to invested capital.
- Overall Insights
- The data reveals a pattern of initial strong growth in value creation, a mid-period decline, and a pronounced recovery by 2024. The continuous decline in invested capital alongside large fluctuations in market value added and the MVA spread ratio suggests strategic shifts in capital utilization, market perception, or operational performance. The 2024 figures particularly highlight an enhanced ability to generate market value significantly exceeding invested capital compared to previous years.
MVA Margin
RTX Corp., MVA margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Net sales | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- Market value added experienced significant fluctuations over the five-year period. It started at 36,314 million US dollars in 2020, nearly doubling to 66,284 million in 2021. However, MVA then declined in the subsequent two years, dropping to 61,542 million in 2022 and further to 54,891 million in 2023. Notably, there was a sharp resurgence in 2024, with MVA reaching its highest point at 102,982 million US dollars.
- Net Sales
- Net sales demonstrated a consistent upward trend across the period. Beginning at 56,587 million US dollars in 2020, sales rose steadily each year, reaching 64,388 million in 2021, 67,074 million in 2022, and 68,920 million in 2023. The most substantial increase occurred in 2024, with sales escalating to 80,738 million US dollars, reflecting strong revenue growth overall.
- MVA Margin
- The MVA margin showed notable volatility but remained positive. Starting at 64.17% in 2020, it peaked at 102.95% in 2021, indicating that market value added was more than equivalent to sales revenue. Following this peak, the margin declined to 91.75% in 2022 and further to 79.64% in 2023, illustrating a reduction in market value added efficiency relative to sales. In 2024, the margin surged to its highest level at 127.55%, exceeding all previous years and indicating an exceptionally strong performance relative to net sales.