Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Mastercard Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Goodwill	7,522)	7,662)	4,960)	4,021)	2,904)
Capitalized software	3,448)	2,929)	2,276)	1,884)	1,514)
Customer relationships	2,161)	2,272)	743)	621)	439)
Other	54)	59)	44)	44)	46)
Finite-lived intangible assets, gross carrying amount	5,663)	5,260)	3,063)	2,549)	1,999)
Accumulated amortization	(1,960)	(1,755)	(1,489)	(1,296)	(1,175)
Finite-lived intangible assets, net carrying amount	3,703)	3,505)	1,574)	1,253)	824)
Customer relationships	156)	166)	179)	164)	167)
Indefinite-lived intangible assets	156)	166)	179)	164)	167)
Net intangible assets, other than goodwill	3,859)	3,671)	1,753)	1,417)	991)
Goodwill and other intangible assets	11,381)	11,333)	6,713)	5,438)	3,895)

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).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Mastercard Inc. goodwill increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.
Net intangible assets, other than goodwill	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Mastercard Inc. net intangible assets, other than goodwill increased from 2020 to 2021 and from 2021 to 2022.
Goodwill and other intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Mastercard Inc. goodwill and other intangible assets increased from 2020 to 2021 and from 2021 to 2022.

Mastercard Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported)	38,724)	37,669)	33,584)	29,236)	24,860)
Less: Goodwill	7,522)	7,662)	4,960)	4,021)	2,904)
Total assets (adjusted)	31,202)	30,007)	28,624)	25,215)	21,956)
Adjustment to Total Mastercard Incorporated Stockholders’ Equity
Total Mastercard Incorporated stockholders’ equity (as reported)	6,298)	7,312)	6,391)	5,893)	5,395)
Less: Goodwill	7,522)	7,662)	4,960)	4,021)	2,904)
Total Mastercard Incorporated stockholders’ equity (adjusted)	(1,224)	(350)	1,431)	1,872)	2,491)

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).

Mastercard Inc., Financial Data: Reported vs. Adjusted

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Mastercard Inc., adjusted financial ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Total Asset Turnover
Reported total asset turnover	0.57	0.50	0.46	0.58	0.60
Adjusted total asset turnover	0.71	0.63	0.53	0.67	0.68
Financial Leverage
Reported financial leverage	6.15	5.15	5.25	4.96	4.61
Adjusted financial leverage	—	—	20.00	13.47	8.81
Return on Equity (ROE)
Reported ROE	157.67%	118.80%	100.31%	137.76%	108.60%
Adjusted ROE	—	—	448.01%	433.65%	235.21%
Return on Assets (ROA)
Reported ROA	25.64%	23.06%	19.09%	27.77%	23.57%
Adjusted ROA	31.82%	28.95%	22.40%	32.20%	26.69%

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).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Mastercard Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Mastercard Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

Mastercard Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net revenue	22,237)	18,884)	15,301)	16,883)	14,950)
Total assets	38,724)	37,669)	33,584)	29,236)	24,860)
Activity Ratio
Total asset turnover¹	0.57	0.50	0.46	0.58	0.60
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net revenue	22,237)	18,884)	15,301)	16,883)	14,950)
Adjusted total assets	31,202)	30,007)	28,624)	25,215)	21,956)
Activity Ratio
Adjusted total asset turnover²	0.71	0.63	0.53	0.67	0.68

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).

2022 Calculations

¹ Total asset turnover = Net revenue ÷ Total assets
= 22,237 ÷ 38,724 = 0.57

² Adjusted total asset turnover = Net revenue ÷ Adjusted total assets
= 22,237 ÷ 31,202 = 0.71

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Mastercard Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets	38,724)	37,669)	33,584)	29,236)	24,860)
Total Mastercard Incorporated stockholders’ equity	6,298)	7,312)	6,391)	5,893)	5,395)
Solvency Ratio
Financial leverage¹	6.15	5.15	5.25	4.96	4.61
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	31,202)	30,007)	28,624)	25,215)	21,956)
Adjusted total Mastercard Incorporated stockholders’ equity	(1,224)	(350)	1,431)	1,872)	2,491)
Solvency Ratio
Adjusted financial leverage²	—	—	20.00	13.47	8.81

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).

2022 Calculations

¹ Financial leverage = Total assets ÷ Total Mastercard Incorporated stockholders’ equity
= 38,724 ÷ 6,298 = 6.15

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Mastercard Incorporated stockholders’ equity
= 31,202 ÷ -1,224 = —

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income	9,930)	8,687)	6,411)	8,118)	5,859)
Total Mastercard Incorporated stockholders’ equity	6,298)	7,312)	6,391)	5,893)	5,395)
Profitability Ratio
ROE¹	157.67%	118.80%	100.31%	137.76%	108.60%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	9,930)	8,687)	6,411)	8,118)	5,859)
Adjusted total Mastercard Incorporated stockholders’ equity	(1,224)	(350)	1,431)	1,872)	2,491)
Profitability Ratio
Adjusted ROE²	—	—	448.01%	433.65%	235.21%

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).

2022 Calculations

¹ ROE = 100 × Net income ÷ Total Mastercard Incorporated stockholders’ equity
= 100 × 9,930 ÷ 6,298 = 157.67%

² Adjusted ROE = 100 × Net income ÷ Adjusted total Mastercard Incorporated stockholders’ equity
= 100 × 9,930 ÷ -1,224 = —

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income	9,930)	8,687)	6,411)	8,118)	5,859)
Total assets	38,724)	37,669)	33,584)	29,236)	24,860)
Profitability Ratio
ROA¹	25.64%	23.06%	19.09%	27.77%	23.57%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	9,930)	8,687)	6,411)	8,118)	5,859)
Adjusted total assets	31,202)	30,007)	28,624)	25,215)	21,956)
Profitability Ratio
Adjusted ROA²	31.82%	28.95%	22.40%	32.20%	26.69%

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).

2022 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 9,930 ÷ 38,724 = 25.64%

² Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 9,930 ÷ 31,202 = 31.82%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Mastercard Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

Mastercard Inc. (NYSE:MA)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Mastercard Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Mastercard Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)