Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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Long-term Activity Ratios (Summary)
Mastercard Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
The analysis of the quarterly financial ratios for Mastercard Inc. reveals distinct trends in asset turnover metrics over the given periods.
- Net Fixed Asset Turnover
- The ratio starts at a high level of 16.23 in December 2018 and then steadily declines until March 2020, reaching 8.04. From this lowest point, the ratio shows a gradual recovery, increasing consistently through subsequent quarters and reaching 11.37 by March 2023. This trend suggests that the efficiency in using net fixed assets to generate sales decreased notably initially but improved substantially in the later periods.
- Total Asset Turnover
- The total asset turnover displays a generally declining pattern from December 2018 (0.6) to December 2020 (0.46), indicating a reduction in the company's ability to generate revenue from its total assets. From March 2021 onward, the ratio stabilizes and begins a recovery trend from 0.44, rising to 0.59 by March 2023. This recovery points to improved overall asset utilization efficiency in the most recent periods.
- Equity Turnover
- The equity turnover ratio fluctuates with some variability but demonstrates an overall upward trend. Starting at 2.77 in December 2018, it peaks at 3.29 in December 2018, then declines until September 2020 (2.39). From that point forward, the ratio progressively increases, with significant rises in 2022 and early 2023, peaking at 4.28 by March 2023. This suggests an enhanced ability to generate revenue from shareholders' equity over time, particularly in the more recent quarters.
In summary, the company experienced initial declines in asset utilization efficiency, particularly in fixed assets and total assets, through 2020; however, these metrics have shown marked improvement through 2021 to early 2023. Meanwhile, equity turnover exhibits growth overall, reflecting increasing effectiveness in leveraging equity to produce sales. These patterns might indicate strategic adjustments and operational improvements contributing to more efficient asset and equity use in recent periods.
Net Fixed Asset Turnover
Mastercard Inc., net fixed asset turnover calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net revenue | ||||||||||||||||||||||||||||
| Property, equipment and right-of-use assets, net of accumulated depreciation and amortization | ||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Net fixed asset turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Accenture PLC | ||||||||||||||||||||||||||||
| Adobe Inc. | ||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | ||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | ||||||||||||||||||||||||||||
| Fair Isaac Corp. | ||||||||||||||||||||||||||||
| International Business Machines Corp. | ||||||||||||||||||||||||||||
| Intuit Inc. | ||||||||||||||||||||||||||||
| Microsoft Corp. | ||||||||||||||||||||||||||||
| Oracle Corp. | ||||||||||||||||||||||||||||
| Palantir Technologies Inc. | ||||||||||||||||||||||||||||
| Palo Alto Networks Inc. | ||||||||||||||||||||||||||||
| Salesforce Inc. | ||||||||||||||||||||||||||||
| ServiceNow Inc. | ||||||||||||||||||||||||||||
| Synopsys Inc. | ||||||||||||||||||||||||||||
| Workday Inc. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
Net fixed asset turnover
= (Net revenueQ1 2023
+ Net revenueQ4 2022
+ Net revenueQ3 2022
+ Net revenueQ2 2022)
÷ Property, equipment and right-of-use assets, net of accumulated depreciation and amortization
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals distinct trends and developments over the observed periods.
- Net Revenue
- The net revenue displays a general upward trend from March 31, 2018, to March 31, 2023, indicating overall growth. Starting at 3,580 million USD in early 2018, net revenue consistently increased with some fluctuations, peaking at 5,817 million USD in December 2022, before experiencing a slight decline to 5,748 million USD in March 2023. Notably, there was a decline during the early quarters of 2020, corresponding with the period of economic disruptions, but revenues later rebounded and surpassed previous highs through 2021 and 2022.
- Property, Equipment, and Right-of-Use Assets (Net)
- This asset category shows a marked increase over the years, rising from 839 million USD in the first quarter of 2018 to 2,006 million USD by the first quarter of 2023. The growth accelerated around 2019, with significant jumps observed between March 31, 2019, and December 31, 2019, as well as a steady accumulation of assets continuing thereafter. This increase in assets may reflect investments in infrastructure, technology, or leased assets aligned with strategic expansion or operational enhancements.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio data is available starting from June 30, 2018. Initially, the ratio was high at 16.23, declining sharply through 2018 and 2019 to about 8.04 by December 2020. This downward trend implies that net fixed assets were increasing at a faster pace than net revenue during this period, thus reducing asset efficiency. However, from early 2021 onwards, the turnover ratio progressively improved, reaching 11.37 by March 2023. This recovery suggests enhanced utilization of fixed assets in generating revenue, indicating better operational efficiency or stronger revenue growth relative to asset base in recent quarters.
In summary, the company experienced strong revenue growth over the five-year span despite short-term disruptions, supported by substantial investments in property and equipment. The improvement in fixed asset turnover in later years reflects a positive shift towards more effective asset utilization.
Total Asset Turnover
Mastercard Inc., total asset turnover calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net revenue | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Total asset turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Accenture PLC | ||||||||||||||||||||||||||||
| Adobe Inc. | ||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | ||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | ||||||||||||||||||||||||||||
| Fair Isaac Corp. | ||||||||||||||||||||||||||||
| International Business Machines Corp. | ||||||||||||||||||||||||||||
| Intuit Inc. | ||||||||||||||||||||||||||||
| Microsoft Corp. | ||||||||||||||||||||||||||||
| Oracle Corp. | ||||||||||||||||||||||||||||
| Palantir Technologies Inc. | ||||||||||||||||||||||||||||
| Palo Alto Networks Inc. | ||||||||||||||||||||||||||||
| Salesforce Inc. | ||||||||||||||||||||||||||||
| ServiceNow Inc. | ||||||||||||||||||||||||||||
| Synopsys Inc. | ||||||||||||||||||||||||||||
| Workday Inc. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
Total asset turnover
= (Net revenueQ1 2023
+ Net revenueQ4 2022
+ Net revenueQ3 2022
+ Net revenueQ2 2022)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the financial data reveals several notable trends in key performance metrics over the observed periods.
- Net Revenue
- The net revenue generally exhibits an upward trajectory over the analyzed timeframe, with some fluctuations. Starting from 3,580 million USD in March 2018, it reaches 5,748 million USD in March 2023, marking substantial growth. There is a noticeable dip in 2020, particularly during the early stages of the COVID-19 pandemic where revenue dropped from 4,414 million USD in December 2019 to 3,335 million USD in June 2020. However, revenue rebounded sharply afterwards and continued to grow steadily through 2021, 2022, and into early 2023.
- Total Assets
- Total assets increased steadily across the periods. From 22,944 million USD at the beginning of 2018, assets grew to 38,936 million USD by the first quarter of 2023. The growth is consistent, indicating expansion of asset base which could support increased business activities. Notable asset growth occurred between late 2019 and 2021, aligning with the period following the temporary revenue disruption.
- Total Asset Turnover
- The total asset turnover ratio, which measures the efficiency of asset use to generate revenue, shows a declining trend from 0.6 in December 2018 down to 0.44 in June 2021. This decline suggests that asset utilization efficiency lessened over this time. However, from mid-2021 onward, the ratio improves, increasing back to 0.59 by March 2023. This improvement indicates better asset deployment or more effective revenue generation relative to the asset base in recent periods.
In summary, the data depicts a company experiencing growth in both revenue and assets over the long term, despite a temporary revenue setback during 2020. The initial decrease and subsequent recovery in total asset turnover reflect shifts in operational efficiency or business dynamics, with recent periods pointing to a more efficient use of assets to drive revenue.
Equity Turnover
Mastercard Inc., equity turnover calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net revenue | ||||||||||||||||||||||||||||
| Total Mastercard Incorporated stockholders’ equity | ||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Equity turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Accenture PLC | ||||||||||||||||||||||||||||
| Adobe Inc. | ||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | ||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | ||||||||||||||||||||||||||||
| Fair Isaac Corp. | ||||||||||||||||||||||||||||
| International Business Machines Corp. | ||||||||||||||||||||||||||||
| Intuit Inc. | ||||||||||||||||||||||||||||
| Microsoft Corp. | ||||||||||||||||||||||||||||
| Oracle Corp. | ||||||||||||||||||||||||||||
| Palantir Technologies Inc. | ||||||||||||||||||||||||||||
| Palo Alto Networks Inc. | ||||||||||||||||||||||||||||
| Salesforce Inc. | ||||||||||||||||||||||||||||
| ServiceNow Inc. | ||||||||||||||||||||||||||||
| Synopsys Inc. | ||||||||||||||||||||||||||||
| Workday Inc. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
Equity turnover
= (Net revenueQ1 2023
+ Net revenueQ4 2022
+ Net revenueQ3 2022
+ Net revenueQ2 2022)
÷ Total Mastercard Incorporated stockholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The quarterly financial data indicates several notable trends in key metrics over the time period analyzed.
- Net Revenue
- Net revenue exhibits a generally upward trajectory from March 31, 2018, through March 31, 2023. The revenue fluctuates within quarters but shows consistent growth overall, increasing from approximately 3,580 million US dollars in early 2018 to around 5,748 million US dollars by early 2023. A noticeable dip occurs around the mid-2020 quarters, likely due to external factors impacting business activities, with revenue dropping to as low as 3,335 million US dollars in June 2020. Following this, a strong recovery and subsequent growth trend is evident, reaching peak values exceeding 5,800 million US dollars by the end of 2022 and beginning of 2023.
- Total Stockholders’ Equity
- Stockholders' equity demonstrates volatility throughout the examined period. Beginning at 5,703 million US dollars in March 2018, it declines to its lowest level of approximately 4,949 million US dollars in September 2019. Thereafter, it recovers considerably, peaking near 7,312 million US dollars in December 2021. Post this peak, the equity declines noticeably again, falling to around 5,330 million US dollars by March 2023. Such fluctuations suggest varying capital management activities, potential share buybacks, dividend payments, or other equity-related transactions affecting the balance.
- Equity Turnover Ratio
- The equity turnover ratio, available from March 31, 2019, onward, measures the efficiency of equity utilization to generate revenue. Starting at 2.77 in early 2019, the ratio increases overall to reach a high of 4.28 by March 31, 2023. Despite some fluctuations, including temporary decreases in late 2020 and mid-2021, the long-term trend is upward, indicating improving efficiency in generating revenue relative to equity. This trend accompanies the overall rise in net revenue and the late-period equity reduction, suggesting enhanced performance or operational leverage.
In summary, the data reveals that net revenue growth is sustained despite periodic downturns, equity values experience considerable volatility possibly tied to corporate financial strategies, and equity turnover improves consistently, reflecting better asset utilization and operational efficiency over time.