Stock Analysis on Net

Mastercard Inc. (NYSE:MA)

This company has been moved to the archive! The financial data has not been updated since April 27, 2023.

Analysis of Profitability Ratios

Microsoft Excel

Profitability Ratios (Summary)

Mastercard Inc., profitability ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Return on Sales
Operating profit margin 55.15% 53.39% 52.81% 57.24% 48.71%
Net profit margin 44.66% 46.00% 41.90% 48.08% 39.19%
Return on Investment
Return on equity (ROE) 157.67% 118.80% 100.31% 137.76% 108.60%
Return on assets (ROA) 25.64% 23.06% 19.09% 27.77% 23.57%

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).

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Mastercard Inc. operating profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Mastercard Inc. net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

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

Operating Profit Margin

Mastercard Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Operating income 12,264 10,082 8,081 9,664 7,282
Net revenue 22,237 18,884 15,301 16,883 14,950
Profitability Ratio
Operating profit margin1 55.15% 53.39% 52.81% 57.24% 48.71%
Benchmarks
Operating Profit Margin, Competitors2
Accenture PLC 15.21% 15.08% 14.69% 14.59%
Adobe Inc. 34.64% 36.76% 32.93% 29.25% 31.45%
Autodesk Inc. 14.08% 16.60% 10.48% -0.97%
Cadence Design Systems Inc. 30.15% 26.07% 24.06% 21.05%
CrowdStrike Holdings Inc. -9.82% -10.58% -30.34%
International Business Machines Corp. 13.50% 11.97% 9.22% 13.67%
Intuit Inc. 20.20% 25.95% 28.34% 27.33%
Microsoft Corp. 42.06% 41.59% 37.03% 34.14%
Oracle Corp. 25.74% 37.58% 35.57% 34.26%
Palo Alto Networks Inc. -3.43% -7.15% -5.25% -1.87%
Salesforce Inc. 2.07% 2.14% 1.74% 4.03%
ServiceNow Inc. 4.90% 4.36% 4.40% 1.22%
Synopsys Inc. 22.87% 17.48% 16.83% 15.48% 11.54%
Operating Profit Margin, Sector
Software & Services 27.74% 28.66% 24.84% 24.12%
Operating Profit Margin, Industry
Information Technology 28.31% 28.72% 24.93% 25.33%

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
Operating profit margin = 100 × Operating income ÷ Net revenue
= 100 × 12,264 ÷ 22,237 = 55.15%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Mastercard Inc. operating profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.

Net Profit Margin

Mastercard Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel
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
Net revenue 22,237 18,884 15,301 16,883 14,950
Profitability Ratio
Net profit margin1 44.66% 46.00% 41.90% 48.08% 39.19%
Benchmarks
Net Profit Margin, Competitors2
Accenture PLC 11.17% 11.69% 11.52% 11.06%
Adobe Inc. 27.01% 30.55% 40.88% 26.42% 28.69%
Autodesk Inc. 11.33% 31.88% 6.55% -3.14%
Cadence Design Systems Inc. 23.84% 23.29% 22.02% 42.33%
CrowdStrike Holdings Inc. -16.18% -10.59% -29.45%
International Business Machines Corp. 2.71% 10.01% 7.59% 12.22%
Intuit Inc. 16.23% 21.41% 23.78% 22.95%
Microsoft Corp. 36.69% 36.45% 30.96% 31.18%
Oracle Corp. 15.83% 33.96% 25.94% 28.05%
Palo Alto Networks Inc. -4.85% -11.72% -7.83% -2.82%
Salesforce Inc. 5.45% 19.16% 0.74% 8.36%
ServiceNow Inc. 4.49% 3.90% 2.62% 18.11%
Synopsys Inc. 19.38% 18.02% 18.03% 15.84% 13.86%
Net Profit Margin, Sector
Software & Services 22.02% 25.95% 20.66% 21.76%
Net Profit Margin, Industry
Information Technology 23.93% 25.58% 21.38% 22.17%

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 profit margin = 100 × Net income ÷ Net revenue
= 100 × 9,930 ÷ 22,237 = 44.66%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Mastercard Inc. net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Return on Equity (ROE)

Mastercard Inc., ROE calculation, comparison to benchmarks

Microsoft Excel
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
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%
Benchmarks
ROE, Competitors2
Accenture PLC 31.11% 30.25% 30.05% 33.17%
Adobe Inc. 33.85% 32.59% 39.66% 28.03% 27.67%
Autodesk Inc. 58.53% 125.14%
Cadence Design Systems Inc. 30.93% 25.39% 23.69% 47.03%
CrowdStrike Holdings Inc. -22.89% -10.64% -19.10%
International Business Machines Corp. 7.47% 30.38% 27.14% 45.25%
Intuit Inc. 12.57% 20.89% 35.76% 41.53%
Microsoft Corp. 43.68% 43.15% 37.43% 38.35%
Oracle Corp. 262.43% 83.94% 50.87%
Palo Alto Networks Inc. -127.14% -78.63% -24.23% -5.16%
Salesforce Inc. 2.48% 9.81% 0.37% 7.11%
ServiceNow Inc. 6.46% 6.22% 4.18% 29.45%
Synopsys Inc. 17.85% 14.31% 13.54% 13.04% 12.43%
ROE, Sector
Software & Services 31.91% 37.56% 31.66% 36.26%
ROE, Industry
Information Technology 38.36% 42.36% 35.12% 36.53%

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

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Mastercard Inc. ROE improved from 2020 to 2021 and from 2021 to 2022.

Return on Assets (ROA)

Mastercard Inc., ROA calculation, comparison to benchmarks

Microsoft Excel
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
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%
Benchmarks
ROA, Competitors2
Accenture PLC 14.55% 13.68% 13.78% 16.04%
Adobe Inc. 17.51% 17.70% 21.66% 14.22% 13.80%
Autodesk Inc. 5.77% 16.60% 3.47% -1.71%
Cadence Design Systems Inc. 16.53% 15.87% 14.95% 29.46%
CrowdStrike Holdings Inc. -6.49% -3.39% -10.09%
International Business Machines Corp. 1.29% 4.35% 3.58% 6.20%
Intuit Inc. 7.45% 13.29% 16.70% 24.78%
Microsoft Corp. 19.94% 18.36% 14.70% 13.69%
Oracle Corp. 6.15% 10.48% 8.78% 10.20%
Palo Alto Networks Inc. -2.18% -4.87% -2.95% -1.24%
Salesforce Inc. 1.52% 6.14% 0.23% 3.61%
ServiceNow Inc. 2.44% 2.13% 1.36% 10.41%
Synopsys Inc. 10.45% 8.66% 8.27% 8.31% 7.04%
ROA, Sector
Software & Services 11.56% 12.60% 9.97% 10.89%
ROA, Industry
Information Technology 14.99% 15.62% 12.12% 12.78%

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

2 Click competitor name to see calculations.

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