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.

MVA
MVA Spread Ratio
MVA Margin

Waste Management Inc., MVA calculation

US$ in millions

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Fair value of debt¹	14,100)	15,200)	14,500)	10,100)	9,900)
Operating lease liability	523)	516)	445)	492)	485)
Market value of common equity	59,153)	46,784)	52,762)	41,886)	36,437)
Noncontrolling interests	2)	2)	2)	1)	23)
Less: Available-for-sale securities	395)	390)	350)	288)	96)
Market (fair) value of Waste Management	73,383)	62,112)	67,359)	52,192)	46,749)
Less: Invested capital²	22,932)	23,729)	22,640)	18,435)	17,686)
MVA	50,451)	38,383)	44,719)	33,756)	29,063)

Based on: 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), 10-K (reporting date: 2017-12-31).

¹ Fair value of debt. See details »

² Invested capital. See details »

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Item	Description	The company
MVA	Waste Management Inc. market (fair) value less invested capital.	Waste Management Inc. MVA decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Waste Management Inc., MVA spread ratio calculation

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Selected Financial Data (US$ in millions)
Market value added (MVA)¹	50,451)	38,383)	44,719)	33,756)	29,063)
Invested capital²	22,932)	23,729)	22,640)	18,435)	17,686)
Performance Ratio
MVA spread ratio³	220.00%	161.75%	197.52%	183.11%	164.33%

Based on: 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), 10-K (reporting date: 2017-12-31).

¹ MVA. See details »

² Invested capital. See details »

³ 2021 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 50,451 ÷ 22,932 = 220.00%

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Performance ratio	Description	The company
MVA spread ratio	The ratio of MVA to invested capital. It measures the efficiency with which investors’ capital investment has translated into a franchise value and into an aggregate net present value premium.	Waste Management Inc. MVA spread ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Waste Management Inc., MVA margin calculation

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Selected Financial Data (US$ in millions)
Market value added (MVA)¹	50,451)	38,383)	44,719)	33,756)	29,063)

Operating revenues	17,931)	15,218)	15,455)	14,914)	14,485)
Add: Increase (decrease) in deferred revenues	32)	5)	12)	19)	10)
Adjusted operating revenues	17,963)	15,223)	15,467)	14,933)	14,495)
Performance Ratio
MVA margin²	280.86%	252.14%	289.12%	226.05%	200.51%

Based on: 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), 10-K (reporting date: 2017-12-31).

¹ MVA. See details »

² 2021 Calculation
MVA margin = 100 × MVA ÷ Adjusted operating revenues
= 100 × 50,451 ÷ 17,963 = 280.86%

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Performance ratio	Description	The company
MVA margin	The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value.	Waste Management Inc. MVA margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Waste Management Inc. (NYSE:WM)

Market Value Added (MVA)

MVA

MVA Spread Ratio

MVA Margin