Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Mastercard Inc., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Mastercard Inc. debt to equity ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Mastercard Inc. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Mastercard Inc. debt to capital ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Mastercard Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Mastercard Inc. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Mastercard Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Mastercard Inc. financial leverage ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Mastercard Inc. interest coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Mastercard Inc. fixed charge coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Equity
Mastercard Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 274) | 792) | 649) | —) | 500) | |
| Long-term debt, excluding current portion | 13,749) | 13,109) | 12,023) | 8,527) | 5,834) | |
| Total debt | 14,023) | 13,901) | 12,672) | 8,527) | 6,334) | |
| Total Mastercard Incorporated stockholders’ equity | 6,298) | 7,312) | 6,391) | 5,893) | 5,395) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 2.23 | 1.90 | 1.98 | 1.45 | 1.17 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Accenture PLC | 0.00 | 0.00 | 0.00 | 0.00 | — | |
| Adobe Inc. | 0.29 | 0.28 | 0.31 | 0.39 | — | |
| Cadence Design Systems Inc. | 0.27 | 0.13 | 0.14 | 0.16 | — | |
| CrowdStrike Holdings Inc. | 0.72 | 0.85 | 0.00 | — | — | |
| International Business Machines Corp. | 2.32 | 2.74 | 2.99 | 3.02 | — | |
| Intuit Inc. | 0.42 | 0.21 | 0.66 | 0.12 | — | |
| Microsoft Corp. | 0.39 | 0.50 | 0.62 | 0.77 | — | |
| Oracle Corp. | — | 16.08 | 5.93 | 2.58 | — | |
| Palantir Technologies Inc. | 0.00 | 0.00 | 0.13 | — | — | |
| Palo Alto Networks Inc. | 17.51 | 5.08 | 2.80 | 0.90 | — | |
| Salesforce Inc. | 0.19 | 0.07 | 0.09 | 0.22 | — | |
| ServiceNow Inc. | 0.30 | 0.43 | 0.58 | 0.33 | — | |
| Synopsys Inc. | 0.00 | 0.02 | 0.03 | 0.03 | — | |
| Debt to Equity, Sector | ||||||
| Software & Services | 0.71 | 0.83 | 0.95 | — | — | |
| Debt to Equity, Industry | ||||||
| Information Technology | 0.70 | 0.83 | 0.97 | — | — | |
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 2022 Calculation
Debt to equity = Total debt ÷ Total Mastercard Incorporated stockholders’ equity
= 14,023 ÷ 6,298 = 2.23
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Mastercard Inc. debt to equity ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Debt to Equity (including Operating Lease Liability)
Mastercard Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 274) | 792) | 649) | —) | 500) | |
| Long-term debt, excluding current portion | 13,749) | 13,109) | 12,023) | 8,527) | 5,834) | |
| Total debt | 14,023) | 13,901) | 12,672) | 8,527) | 6,334) | |
| Operating lease liabilities (recorded on Other current liabilities) | 140) | 127) | 125) | 106) | —) | |
| Operating lease liabilities (recorded on Other liabilities) | 630) | 645) | 726) | 656) | —) | |
| Total debt (including operating lease liability) | 14,793) | 14,673) | 13,523) | 9,289) | 6,334) | |
| Total Mastercard Incorporated stockholders’ equity | 6,298) | 7,312) | 6,391) | 5,893) | 5,395) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 2.35 | 2.01 | 2.12 | 1.58 | 1.17 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Accenture PLC | 0.15 | 0.18 | 0.21 | 0.00 | — | |
| Adobe Inc. | 0.33 | 0.32 | 0.35 | 0.39 | — | |
| Cadence Design Systems Inc. | 0.34 | 0.18 | 0.20 | 0.22 | — | |
| CrowdStrike Holdings Inc. | 0.76 | 0.89 | 0.00 | — | — | |
| International Business Machines Corp. | 2.46 | 2.92 | 3.23 | 3.27 | — | |
| Intuit Inc. | 0.46 | 0.25 | 0.71 | 0.12 | — | |
| Microsoft Corp. | 0.47 | 0.58 | 0.69 | 0.84 | — | |
| Oracle Corp. | — | 16.61 | 6.10 | 2.58 | — | |
| Palantir Technologies Inc. | 0.10 | 0.11 | 0.30 | — | — | |
| Palo Alto Networks Inc. | 19.12 | 5.68 | 3.16 | 0.90 | — | |
| Salesforce Inc. | 0.25 | 0.15 | 0.18 | 0.22 | — | |
| ServiceNow Inc. | 0.44 | 0.60 | 0.75 | 0.53 | — | |
| Synopsys Inc. | 0.12 | 0.13 | 0.14 | 0.03 | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Software & Services | 0.81 | 0.93 | 1.06 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.77 | 0.90 | 1.04 | — | — | |
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 2022 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Mastercard Incorporated stockholders’ equity
= 14,793 ÷ 6,298 = 2.35
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Mastercard Inc. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Debt to Capital
Mastercard Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 274) | 792) | 649) | —) | 500) | |
| Long-term debt, excluding current portion | 13,749) | 13,109) | 12,023) | 8,527) | 5,834) | |
| Total debt | 14,023) | 13,901) | 12,672) | 8,527) | 6,334) | |
| Total Mastercard Incorporated stockholders’ equity | 6,298) | 7,312) | 6,391) | 5,893) | 5,395) | |
| Total capital | 20,321) | 21,213) | 19,063) | 14,420) | 11,729) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.69 | 0.66 | 0.66 | 0.59 | 0.54 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Accenture PLC | 0.00 | 0.00 | 0.00 | 0.00 | — | |
| Adobe Inc. | 0.23 | 0.22 | 0.24 | 0.28 | — | |
| Cadence Design Systems Inc. | 0.21 | 0.11 | 0.12 | 0.14 | — | |
| CrowdStrike Holdings Inc. | 0.42 | 0.46 | 0.00 | — | — | |
| International Business Machines Corp. | 0.70 | 0.73 | 0.75 | 0.75 | — | |
| Intuit Inc. | 0.30 | 0.17 | 0.40 | 0.10 | — | |
| Microsoft Corp. | 0.28 | 0.33 | 0.38 | 0.43 | — | |
| Oracle Corp. | 1.09 | 0.94 | 0.86 | 0.72 | — | |
| Palantir Technologies Inc. | 0.00 | 0.00 | 0.12 | — | — | |
| Palo Alto Networks Inc. | 0.95 | 0.84 | 0.74 | 0.47 | — | |
| Salesforce Inc. | 0.16 | 0.06 | 0.08 | 0.18 | — | |
| ServiceNow Inc. | 0.23 | 0.30 | 0.37 | 0.25 | — | |
| Synopsys Inc. | 0.00 | 0.02 | 0.03 | 0.03 | — | |
| Debt to Capital, Sector | ||||||
| Software & Services | 0.42 | 0.45 | 0.49 | — | — | |
| Debt to Capital, Industry | ||||||
| Information Technology | 0.41 | 0.45 | 0.49 | — | — | |
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 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 14,023 ÷ 20,321 = 0.69
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Mastercard Inc. debt to capital ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Debt to Capital (including Operating Lease Liability)
Mastercard Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 274) | 792) | 649) | —) | 500) | |
| Long-term debt, excluding current portion | 13,749) | 13,109) | 12,023) | 8,527) | 5,834) | |
| Total debt | 14,023) | 13,901) | 12,672) | 8,527) | 6,334) | |
| Operating lease liabilities (recorded on Other current liabilities) | 140) | 127) | 125) | 106) | —) | |
| Operating lease liabilities (recorded on Other liabilities) | 630) | 645) | 726) | 656) | —) | |
| Total debt (including operating lease liability) | 14,793) | 14,673) | 13,523) | 9,289) | 6,334) | |
| Total Mastercard Incorporated stockholders’ equity | 6,298) | 7,312) | 6,391) | 5,893) | 5,395) | |
| Total capital (including operating lease liability) | 21,091) | 21,985) | 19,914) | 15,182) | 11,729) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.70 | 0.67 | 0.68 | 0.61 | 0.54 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Accenture PLC | 0.13 | 0.15 | 0.17 | 0.00 | — | |
| Adobe Inc. | 0.25 | 0.24 | 0.26 | 0.28 | — | |
| Cadence Design Systems Inc. | 0.25 | 0.15 | 0.17 | 0.18 | — | |
| CrowdStrike Holdings Inc. | 0.43 | 0.47 | 0.00 | — | — | |
| International Business Machines Corp. | 0.71 | 0.74 | 0.76 | 0.77 | — | |
| Intuit Inc. | 0.31 | 0.20 | 0.42 | 0.10 | — | |
| Microsoft Corp. | 0.32 | 0.37 | 0.41 | 0.46 | — | |
| Oracle Corp. | 1.08 | 0.94 | 0.86 | 0.72 | — | |
| Palantir Technologies Inc. | 0.09 | 0.10 | 0.23 | — | — | |
| Palo Alto Networks Inc. | 0.95 | 0.85 | 0.76 | 0.47 | — | |
| Salesforce Inc. | 0.20 | 0.13 | 0.16 | 0.18 | — | |
| ServiceNow Inc. | 0.31 | 0.37 | 0.43 | 0.35 | — | |
| Synopsys Inc. | 0.11 | 0.11 | 0.12 | 0.03 | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Software & Services | 0.45 | 0.48 | 0.51 | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.43 | 0.47 | 0.51 | — | — | |
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 2022 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 14,793 ÷ 21,091 = 0.70
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Mastercard Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Debt to Assets
Mastercard Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 274) | 792) | 649) | —) | 500) | |
| Long-term debt, excluding current portion | 13,749) | 13,109) | 12,023) | 8,527) | 5,834) | |
| Total debt | 14,023) | 13,901) | 12,672) | 8,527) | 6,334) | |
| Total assets | 38,724) | 37,669) | 33,584) | 29,236) | 24,860) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.36 | 0.37 | 0.38 | 0.29 | 0.25 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Accenture PLC | 0.00 | 0.00 | 0.00 | 0.00 | — | |
| Adobe Inc. | 0.15 | 0.15 | 0.17 | 0.20 | — | |
| Cadence Design Systems Inc. | 0.15 | 0.08 | 0.09 | 0.10 | — | |
| CrowdStrike Holdings Inc. | 0.20 | 0.27 | 0.00 | — | — | |
| International Business Machines Corp. | 0.40 | 0.39 | 0.39 | 0.41 | — | |
| Intuit Inc. | 0.25 | 0.13 | 0.31 | 0.07 | — | |
| Microsoft Corp. | 0.18 | 0.21 | 0.24 | 0.27 | — | |
| Oracle Corp. | 0.69 | 0.64 | 0.62 | 0.52 | — | |
| Palantir Technologies Inc. | 0.00 | 0.00 | 0.07 | — | — | |
| Palo Alto Networks Inc. | 0.30 | 0.31 | 0.34 | 0.22 | — | |
| Salesforce Inc. | 0.12 | 0.04 | 0.06 | 0.11 | — | |
| ServiceNow Inc. | 0.11 | 0.15 | 0.19 | 0.12 | — | |
| Synopsys Inc. | 0.00 | 0.01 | 0.02 | 0.02 | — | |
| Debt to Assets, Sector | ||||||
| Software & Services | 0.26 | 0.28 | 0.30 | — | — | |
| Debt to Assets, Industry | ||||||
| Information Technology | 0.26 | 0.29 | 0.31 | — | — | |
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 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= 14,023 ÷ 38,724 = 0.36
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Mastercard Inc. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Assets (including Operating Lease Liability)
Mastercard Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt | 274) | 792) | 649) | —) | 500) | |
| Long-term debt, excluding current portion | 13,749) | 13,109) | 12,023) | 8,527) | 5,834) | |
| Total debt | 14,023) | 13,901) | 12,672) | 8,527) | 6,334) | |
| Operating lease liabilities (recorded on Other current liabilities) | 140) | 127) | 125) | 106) | —) | |
| Operating lease liabilities (recorded on Other liabilities) | 630) | 645) | 726) | 656) | —) | |
| Total debt (including operating lease liability) | 14,793) | 14,673) | 13,523) | 9,289) | 6,334) | |
| Total assets | 38,724) | 37,669) | 33,584) | 29,236) | 24,860) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.38 | 0.39 | 0.40 | 0.32 | 0.25 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Accenture PLC | 0.07 | 0.08 | 0.09 | 0.00 | — | |
| Adobe Inc. | 0.17 | 0.17 | 0.19 | 0.20 | — | |
| Cadence Design Systems Inc. | 0.18 | 0.11 | 0.13 | 0.14 | — | |
| CrowdStrike Holdings Inc. | 0.21 | 0.29 | 0.00 | — | — | |
| International Business Machines Corp. | 0.42 | 0.42 | 0.43 | 0.45 | — | |
| Intuit Inc. | 0.27 | 0.16 | 0.33 | 0.07 | — | |
| Microsoft Corp. | 0.21 | 0.25 | 0.27 | 0.30 | — | |
| Oracle Corp. | 0.73 | 0.66 | 0.64 | 0.52 | — | |
| Palantir Technologies Inc. | 0.07 | 0.08 | 0.17 | — | — | |
| Palo Alto Networks Inc. | 0.33 | 0.35 | 0.38 | 0.22 | — | |
| Salesforce Inc. | 0.15 | 0.10 | 0.11 | 0.11 | — | |
| ServiceNow Inc. | 0.17 | 0.21 | 0.24 | 0.19 | — | |
| Synopsys Inc. | 0.07 | 0.08 | 0.08 | 0.02 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Software & Services | 0.30 | 0.32 | 0.34 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.29 | 0.31 | 0.33 | — | — | |
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 2022 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 14,793 ÷ 38,724 = 0.38
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Mastercard Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Financial Leverage
Mastercard Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| 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 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Accenture PLC | 2.14 | 2.21 | 2.18 | 2.07 | — | |
| Adobe Inc. | 1.93 | 1.84 | 1.83 | 1.97 | — | |
| Cadence Design Systems Inc. | 1.87 | 1.60 | 1.58 | 1.60 | — | |
| CrowdStrike Holdings Inc. | 3.53 | 3.14 | 1.89 | — | — | |
| International Business Machines Corp. | 5.80 | 6.98 | 7.57 | 7.30 | — | |
| Intuit Inc. | 1.69 | 1.57 | 2.14 | 1.68 | — | |
| Microsoft Corp. | 2.19 | 2.35 | 2.55 | 2.80 | — | |
| Oracle Corp. | — | 25.03 | 9.56 | 4.99 | — | |
| Palantir Technologies Inc. | 1.35 | 1.42 | 1.77 | — | — | |
| Palo Alto Networks Inc. | 58.35 | 16.14 | 8.23 | 4.16 | — | |
| Salesforce Inc. | 1.64 | 1.60 | 1.63 | 1.97 | — | |
| ServiceNow Inc. | 2.64 | 2.92 | 3.07 | 2.83 | — | |
| Synopsys Inc. | 1.71 | 1.65 | 1.64 | 1.57 | — | |
| Financial Leverage, Sector | ||||||
| Software & Services | 2.73 | 2.95 | 3.14 | — | — | |
| Financial Leverage, Industry | ||||||
| Information Technology | 2.68 | 2.89 | 3.12 | — | — | |
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 2022 Calculation
Financial leverage = Total assets ÷ Total Mastercard Incorporated stockholders’ equity
= 38,724 ÷ 6,298 = 6.15
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Mastercard Inc. financial leverage ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level. |
Interest Coverage
Mastercard Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 9,930) | 8,687) | 6,411) | 8,118) | 5,859) | |
| Add: Income tax expense | 1,802) | 1,620) | 1,349) | 1,613) | 1,345) | |
| Add: Interest expense | 471) | 431) | 380) | 224) | 186) | |
| Earnings before interest and tax (EBIT) | 12,203) | 10,738) | 8,140) | 9,955) | 7,390) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 25.91 | 24.91 | 21.42 | 44.44 | 39.73 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Accenture PLC | 195.34 | 131.46 | 205.84 | 273.26 | — | |
| Adobe Inc. | 54.64 | 51.49 | 37.00 | 21.38 | — | |
| Cadence Design Systems Inc. | 46.58 | 46.26 | 31.50 | 26.44 | — | |
| CrowdStrike Holdings Inc. | -5.34 | -55.36 | -315.25 | — | — | |
| International Business Machines Corp. | 1.97 | 5.20 | 4.62 | 8.58 | — | |
| Intuit Inc. | 32.38 | 89.14 | 158.00 | 126.40 | — | |
| Microsoft Corp. | 41.58 | 31.31 | 21.47 | 17.27 | — | |
| Oracle Corp. | 3.84 | 6.28 | 7.13 | 6.97 | — | |
| Palantir Technologies Inc. | -87.97 | -133.20 | -82.39 | — | — | |
| Palo Alto Networks Inc. | -6.56 | -1.85 | -1.61 | 0.11 | — | |
| Salesforce Inc. | 8.09 | 24.28 | 7.42 | 8.80 | — | |
| ServiceNow Inc. | 15.78 | 9.89 | 5.56 | 3.02 | — | |
| Synopsys Inc. | 657.96 | 240.38 | 125.16 | 47.79 | — | |
| Interest Coverage, Sector | ||||||
| Software & Services | 18.25 | 17.63 | 14.26 | — | — | |
| Interest Coverage, Industry | ||||||
| Information Technology | 22.78 | 20.06 | 14.26 | — | — | |
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 2022 Calculation
Interest coverage = EBIT ÷ Interest expense
= 12,203 ÷ 471 = 25.91
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Mastercard Inc. interest coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
Fixed Charge Coverage
Mastercard Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 9,930) | 8,687) | 6,411) | 8,118) | 5,859) | |
| Add: Income tax expense | 1,802) | 1,620) | 1,349) | 1,613) | 1,345) | |
| Add: Interest expense | 471) | 431) | 380) | 224) | 186) | |
| Earnings before interest and tax (EBIT) | 12,203) | 10,738) | 8,140) | 9,955) | 7,390) | |
| Add: Operating lease amortization expense | 137) | 122) | 123) | 99) | 114) | |
| Earnings before fixed charges and tax | 12,340) | 10,860) | 8,263) | 10,054) | 7,504) | |
| Interest expense | 471) | 431) | 380) | 224) | 186) | |
| Operating lease amortization expense | 137) | 122) | 123) | 99) | 114) | |
| Fixed charges | 608) | 553) | 503) | 323) | 300) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 20.30 | 19.64 | 16.43 | 31.13 | 25.01 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Accenture PLC | 12.25 | 10.41 | 9.66 | 10.07 | — | |
| Adobe Inc. | 26.79 | 25.59 | 18.77 | 10.78 | — | |
| Cadence Design Systems Inc. | 15.50 | 13.77 | 11.46 | 9.95 | — | |
| CrowdStrike Holdings Inc. | -3.39 | -6.40 | -12.01 | — | — | |
| International Business Machines Corp. | 1.52 | 3.13 | 2.62 | 4.41 | — | |
| Intuit Inc. | 14.67 | 25.58 | 27.48 | 34.00 | — | |
| Microsoft Corp. | 19.50 | 16.90 | 12.44 | 10.94 | — | |
| Oracle Corp. | 3.22 | 5.17 | 5.68 | 5.50 | — | |
| Palantir Technologies Inc. | -5.06 | -7.89 | -16.41 | — | — | |
| Palo Alto Networks Inc. | -1.18 | -1.09 | -0.52 | 0.41 | — | |
| Salesforce Inc. | 2.18 | 2.94 | 1.69 | 3.00 | — | |
| ServiceNow Inc. | 3.87 | 2.95 | 2.29 | 1.69 | — | |
| Synopsys Inc. | 12.91 | 9.29 | 7.46 | 6.30 | — | |
| Fixed Charge Coverage, Sector | ||||||
| Software & Services | 9.53 | 9.37 | 7.56 | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Information Technology | 13.53 | 12.31 | 9.12 | — | — | |
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 2022 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 12,340 ÷ 608 = 20.30
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Mastercard Inc. fixed charge coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |