Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Mastercard Inc., long-term (investment) activity 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).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Mastercard Inc. net fixed asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Mastercard Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2020 to 2021 and from 2021 to 2022. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Mastercard Inc. total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Mastercard Inc. equity turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
Net Fixed Asset Turnover
Mastercard Inc., net fixed asset turnover 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 revenue | 22,237) | 18,884) | 15,301) | 16,883) | 14,950) | |
| Property and equipment, net | 1,327) | 1,236) | 1,154) | 1,117) | 921) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 16.76 | 15.28 | 13.26 | 15.11 | 16.23 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Accenture PLC | 37.12 | 30.83 | 28.68 | 31.06 | — | |
| Adobe Inc. | 9.23 | 9.44 | 8.48 | 8.64 | — | |
| Cadence Design Systems Inc. | 9.59 | 9.77 | 8.62 | — | — | |
| CrowdStrike Holdings Inc. | 5.57 | 5.24 | 3.54 | — | — | |
| International Business Machines Corp. | 11.35 | 10.07 | 7.33 | — | — | |
| Intuit Inc. | 14.33 | 12.35 | 10.46 | 8.70 | — | |
| Microsoft Corp. | 2.66 | 2.81 | 3.24 | 3.45 | — | |
| Oracle Corp. | 4.37 | 5.74 | 6.26 | 6.32 | — | |
| Palantir Technologies Inc. | 27.55 | 49.26 | 36.99 | — | — | |
| Palo Alto Networks Inc. | 15.38 | 13.37 | 9.79 | 9.80 | — | |
| Salesforce Inc. | 9.41 | 8.64 | 7.20 | — | — | |
| ServiceNow Inc. | 6.88 | 7.70 | 6.85 | — | — | |
| Synopsys Inc. | 10.51 | 8.90 | 7.62 | 7.82 | — | |
| Workday Inc. | 4.58 | 4.44 | 3.87 | — | — | |
| Net Fixed Asset Turnover, Sector | ||||||
| Software & Services | 4.48 | 4.72 | 5.14 | — | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Information Technology | 4.44 | 4.74 | 4.57 | — | — | |
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
Net fixed asset turnover = Net revenue ÷ Property and equipment, net
= 22,237 ÷ 1,327 = 16.76
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Mastercard Inc. net fixed asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Mastercard Inc., net fixed asset turnover (including operating lease, right-of-use asset) 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 revenue | 22,237) | 18,884) | 15,301) | 16,883) | 14,950) | |
| Property and equipment, net | 1,327) | 1,236) | 1,154) | 1,117) | 921) | |
| Operating lease right-of-use assets, net | 679) | 671) | 748) | 711) | —) | |
| Property and equipment, net (including operating lease, right-of-use asset) | 2,006) | 1,907) | 1,902) | 1,828) | 921) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 11.09 | 9.90 | 8.04 | 9.24 | 16.23 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Accenture PLC | 13.17 | 10.48 | 9.37 | 31.06 | — | |
| Adobe Inc. | 7.61 | 7.46 | 6.42 | 8.64 | — | |
| Cadence Design Systems Inc. | 6.57 | 6.85 | 6.04 | — | — | |
| CrowdStrike Holdings Inc. | 4.97 | 4.30 | 3.54 | — | — | |
| International Business Machines Corp. | 7.37 | 6.43 | 5.00 | — | — | |
| Intuit Inc. | 8.86 | 8.30 | 8.00 | 8.70 | — | |
| Microsoft Corp. | 2.26 | 2.37 | 2.70 | 2.87 | — | |
| Oracle Corp. | 3.21 | 4.20 | 4.74 | 6.32 | — | |
| Palantir Technologies Inc. | 7.07 | 6.21 | 4.43 | — | — | |
| Palo Alto Networks Inc. | 9.17 | 7.32 | 5.62 | 9.80 | — | |
| Salesforce Inc. | 4.65 | 3.75 | 3.16 | — | — | |
| ServiceNow Inc. | 4.18 | 4.34 | 4.06 | — | — | |
| Synopsys Inc. | 4.87 | 4.35 | 3.88 | 7.82 | — | |
| Workday Inc. | 3.75 | 3.11 | 2.96 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Software & Services | 3.49 | 3.58 | 3.81 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Information Technology | 3.84 | 4.02 | 3.86 | — | — | |
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Net revenue ÷ Property and equipment, net (including operating lease, right-of-use asset)
= 22,237 ÷ 2,006 = 11.09
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Mastercard Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2020 to 2021 and from 2021 to 2022. |
Total Asset Turnover
Mastercard Inc., total asset turnover 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 revenue | 22,237) | 18,884) | 15,301) | 16,883) | 14,950) | |
| Total assets | 38,724) | 37,669) | 33,584) | 29,236) | 24,860) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.57 | 0.50 | 0.46 | 0.58 | 0.60 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Accenture PLC | 1.30 | 1.17 | 1.20 | 1.45 | — | |
| Adobe Inc. | 0.65 | 0.58 | 0.53 | 0.54 | — | |
| Cadence Design Systems Inc. | 0.69 | 0.68 | 0.68 | — | — | |
| CrowdStrike Holdings Inc. | 0.40 | 0.32 | 0.34 | — | — | |
| International Business Machines Corp. | 0.48 | 0.43 | 0.47 | — | — | |
| Intuit Inc. | 0.46 | 0.62 | 0.70 | 1.08 | — | |
| Microsoft Corp. | 0.54 | 0.50 | 0.47 | 0.44 | — | |
| Oracle Corp. | 0.39 | 0.31 | 0.34 | 0.36 | — | |
| Palantir Technologies Inc. | 0.55 | 0.47 | 0.41 | — | — | |
| Palo Alto Networks Inc. | 0.45 | 0.42 | 0.38 | 0.44 | — | |
| Salesforce Inc. | 0.28 | 0.32 | 0.31 | — | — | |
| ServiceNow Inc. | 0.54 | 0.55 | 0.52 | — | — | |
| Synopsys Inc. | 0.54 | 0.48 | 0.46 | 0.52 | — | |
| Workday Inc. | 0.49 | 0.50 | 0.53 | — | — | |
| Total Asset Turnover, Sector | ||||||
| Software & Services | 0.52 | 0.49 | 0.48 | — | — | |
| Total Asset Turnover, Industry | ||||||
| Information Technology | 0.65 | 0.62 | 0.58 | — | — | |
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
Total asset turnover = Net revenue ÷ Total assets
= 22,237 ÷ 38,724 = 0.57
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Mastercard Inc. total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
Equity Turnover
Mastercard Inc., equity turnover 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 revenue | 22,237) | 18,884) | 15,301) | 16,883) | 14,950) | |
| Total Mastercard Incorporated stockholders’ equity | 6,298) | 7,312) | 6,391) | 5,893) | 5,395) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 3.53 | 2.58 | 2.39 | 2.86 | 2.77 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Accenture PLC | 2.79 | 2.59 | 2.61 | 3.00 | — | |
| Adobe Inc. | 1.25 | 1.07 | 0.97 | 1.06 | — | |
| Cadence Design Systems Inc. | 1.30 | 1.09 | 1.08 | — | — | |
| CrowdStrike Holdings Inc. | 1.42 | 1.00 | 0.65 | — | — | |
| International Business Machines Corp. | 2.76 | 3.03 | 3.57 | — | — | |
| Intuit Inc. | 0.77 | 0.98 | 1.50 | 1.81 | — | |
| Microsoft Corp. | 1.19 | 1.18 | 1.21 | 1.23 | — | |
| Oracle Corp. | — | 7.73 | 3.24 | 1.81 | — | |
| Palantir Technologies Inc. | 0.74 | 0.67 | 0.72 | — | — | |
| Palo Alto Networks Inc. | 26.20 | 6.71 | 3.09 | 1.83 | — | |
| Salesforce Inc. | 0.46 | 0.51 | 0.50 | — | — | |
| ServiceNow Inc. | 1.44 | 1.60 | 1.59 | — | — | |
| Synopsys Inc. | 0.92 | 0.79 | 0.75 | 0.82 | — | |
| Workday Inc. | 1.13 | 1.32 | 1.46 | — | — | |
| Equity Turnover, Sector | ||||||
| Software & Services | 1.43 | 1.43 | 1.51 | — | — | |
| Equity Turnover, Industry | ||||||
| Information Technology | 1.74 | 1.79 | 1.82 | — | — | |
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
Equity turnover = Net revenue ÷ Total Mastercard Incorporated stockholders’ equity
= 22,237 ÷ 6,298 = 3.53
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Mastercard Inc. equity turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |