Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Mastercard Inc., profitability 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).
- Operating Profit Margin
- The operating profit margin demonstrated an overall upward trend beginning at 50.27% in the first quarter of 2019, peaking at 57.24% by the end of 2019. Afterward, a gradual decline is observed throughout 2020, reaching a low of 52.81% in the last quarter of that year. Subsequently, the margin stabilized and showed a moderate increase again, fluctuating between 52.22% and 55.17% from 2021 through early 2023. The most recent figure stands at 54.56% in March 2023, indicating a relatively stable margin compared to prior years.
- Net Profit Margin
- The net profit margin also experienced growth initially, rising from 40.82% in early 2019 to a high of 48.08% at the end of the same year. This was followed by a decline during 2020, mirroring the pattern seen in the operating margin, hitting 41.9% in the last quarter of 2020. From 2021 to early 2022, the net profit margin improved steadily, reaching a peak of 47.7% in the first quarter of 2022. However, it declined thereafter, ending at 42.33% in March 2023. This reflects some volatility but generally strong profitability margins over the period analyzed.
- Return on Equity (ROE)
- Return on equity showed considerable fluctuations. Starting from a substantial 120.53% in early 2019, it rose to a peak of 147.26% in the first quarter of 2020. A sharp decrease followed, with ROE falling to a low of 100.31% by the end of 2020. Subsequently, ROE showed strong recovery and upward momentum from 2021 onwards, reaching successive highs and culminating at a significant 181.24% in March 2023. This indicates increasing efficiency in generating returns on shareholders' equity over the longer term despite short-term decreases.
- Return on Assets (ROA)
- Return on assets exhibited a relatively stable but declining trend from 26.48% in early 2019 to a low of 19.09% at the close of 2020. Beginning in 2021, ROA began to improve, returning to levels above 25% by early 2022. More recently, it has experienced slight declines again, ending at 24.81% in March 2023. Overall, the ROA suggests some variability in asset efficiency performance but a general resilience with recovery phases following dips.
Return on Sales
Return on Investment
Operating Profit Margin
Mastercard Inc., operating profit margin 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Operating income | 3,136) | 3,184) | 3,112) | 3,018) | 2,950) | 2,827) | 2,717) | 2,341) | 2,197) | 2,058) | 2,105) | 1,707) | 2,211) | 2,399) | 2,655) | 2,397) | 2,213) | ||||||
| Net revenue | 5,748) | 5,817) | 5,756) | 5,497) | 5,167) | 5,216) | 4,985) | 4,528) | 4,155) | 4,120) | 3,837) | 3,335) | 4,009) | 4,414) | 4,467) | 4,113) | 3,889) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Operating profit margin1 | 54.56% | 55.15% | 55.03% | 55.17% | 54.46% | 53.39% | 52.36% | 52.29% | 52.22% | 52.81% | 54.00% | 55.30% | 56.83% | 57.24% | 52.22% | 51.77% | 50.27% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | 15.27% | 15.21% | 15.20% | 15.12% | 15.19% | 15.08% | 15.03% | 14.89% | 14.84% | — | — | — | — | — | — | — | — | ||||||
| Adobe Inc. | 33.91% | 34.64% | 35.45% | 36.25% | 36.72% | 36.76% | 36.53% | 35.75% | 34.75% | 32.93% | 32.10% | 31.36% | 30.10% | — | — | — | — | ||||||
| AppLovin Corp. | 4.86% | -1.70% | 1.14% | 0.99% | 0.38% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Cadence Design Systems Inc. | 29.26% | 30.15% | 30.81% | 30.20% | 28.35% | 26.07% | 25.83% | 25.72% | 25.35% | — | — | — | — | — | — | — | — | ||||||
| CrowdStrike Holdings Inc. | -8.25% | -9.82% | -10.49% | -10.43% | -10.14% | -10.58% | -14.16% | -18.68% | -25.36% | — | — | — | — | — | — | — | — | ||||||
| Datadog Inc. | -5.80% | -3.50% | -1.02% | 0.79% | 0.34% | -1.86% | -4.15% | -5.35% | -4.53% | — | — | — | — | — | — | — | — | ||||||
| International Business Machines Corp. | 13.49% | 13.50% | 12.92% | 12.77% | 12.30% | 11.97% | 9.12% | 10.13% | 10.39% | — | — | — | — | — | — | — | — | ||||||
| Intuit Inc. | 18.41% | 20.20% | 23.68% | 22.49% | 24.10% | 25.95% | 29.04% | 26.95% | 30.30% | — | — | — | — | — | — | — | — | ||||||
| Microsoft Corp. | 41.69% | 42.06% | 42.56% | 42.52% | 42.14% | 41.59% | 40.15% | 39.24% | 38.17% | — | — | — | — | — | — | — | — | ||||||
| Oracle Corp. | 22.92% | 25.74% | 26.22% | 26.62% | 37.78% | 37.58% | 37.74% | 37.13% | 36.29% | — | — | — | — | — | — | — | — | ||||||
| Palantir Technologies Inc. | -5.93% | -8.46% | -11.05% | -13.30% | -20.43% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Palo Alto Networks Inc. | -1.56% | -3.43% | -5.12% | -6.74% | -7.51% | -7.15% | -6.56% | -5.49% | -4.79% | — | — | — | — | — | — | — | — | ||||||
| Salesforce Inc. | 0.77% | 2.07% | 3.67% | 4.69% | 4.25% | 2.14% | 1.11% | 0.35% | -0.29% | — | — | — | — | — | — | — | — | ||||||
| ServiceNow Inc. | 5.41% | 4.90% | 3.40% | 3.30% | 3.95% | 4.36% | 4.34% | 4.55% | 5.10% | — | — | — | — | — | — | — | — | ||||||
| Synopsys Inc. | 20.70% | 22.87% | 22.93% | 23.18% | 20.72% | 17.48% | 18.17% | 18.81% | 17.82% | 16.83% | 15.77% | 13.85% | 13.64% | — | — | — | — | ||||||
| Workday Inc. | -2.80% | -2.27% | -1.81% | -2.71% | -3.18% | -5.76% | -7.72% | -10.45% | -13.70% | — | — | — | — | — | — | — | — | ||||||
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).
1 Q1 2023 Calculation
Operating profit margin = 100
× (Operating incomeQ1 2023
+ Operating incomeQ4 2022
+ Operating incomeQ3 2022
+ Operating incomeQ2 2022)
÷ (Net revenueQ1 2023
+ Net revenueQ4 2022
+ Net revenueQ3 2022
+ Net revenueQ2 2022)
= 100 × (3,136 + 3,184 + 3,112 + 3,018)
÷ (5,748 + 5,817 + 5,756 + 5,497)
= 54.56%
2 Click competitor name to see calculations.
- Operating Income Trends
- The operating income exhibited a general upward trend over the analyzed period. Starting at $2,213 million in the first quarter of 2019, it experienced fluctuations but showed notable recovery and growth post the mid-2020 period. The lowest recorded value was $1,707 million in the second quarter of 2020, likely impacted by external economic conditions, followed by consistent increases reaching a peak of $3,184 million in the fourth quarter of 2022. The latest figure for the first quarter of 2023 showed a slight decrease to $3,136 million, indicating relative stability at a high level.
- Net Revenue Patterns
- Net revenue displayed growth over the timeline, albeit with some volatility. It began at $3,889 million in early 2019, peaked at $4,467 million in the third quarter of the same year, then declined significantly in the first half of 2020 to $3,335 million in the second quarter. Since mid-2020, net revenue steadily increased, surpassing previous highs and reaching its maximum of $5,817 million in the fourth quarter of 2022. The first quarter of 2023 saw a slight decrease to $5,748 million, suggesting consolidation after strong performance.
- Operating Profit Margin Analysis
- The operating profit margin exhibited a generally stable and slightly upward trajectory. Initially around 50.27% in the first quarter of 2019, the margin improved to peaks above 57% by the end of 2019. Though there was a modest decline during mid-2020 (reaching approximately 52.81%), the margin steadily recovered and remained above 54% through 2021 and 2022, peaking near 55.17%. The margin slightly decreased to 54.56% in the first quarter of 2023, indicating sustained operational efficiency with marginal fluctuations.
- Overall Insights
- The data reflect resilience and adaptation through economic challenges evident in 2020, followed by robust recovery and growth in financial performance through 2021 and 2022. Both operating income and net revenue exhibited volatility early in the period but strengthened progressively. The operating profit margin remained strong, highlighting effective cost management and profitability maintenance despite external pressures. The slight declines observed in the first quarter of 2023 across metrics suggest normalization rather than downturn.
Net Profit Margin
Mastercard Inc., net profit margin calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income | 2,361) | 2,525) | 2,499) | 2,275) | 2,631) | 2,379) | 2,414) | 2,066) | 1,828) | 1,785) | 1,513) | 1,420) | 1,693) | 2,100) | 2,108) | 2,048) | 1,862) | ||||||
| Net revenue | 5,748) | 5,817) | 5,756) | 5,497) | 5,167) | 5,216) | 4,985) | 4,528) | 4,155) | 4,120) | 3,837) | 3,335) | 4,009) | 4,414) | 4,467) | 4,113) | 3,889) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Net profit margin1 | 42.33% | 44.66% | 45.22% | 46.48% | 47.70% | 46.00% | 45.50% | 43.22% | 42.38% | 41.90% | 43.13% | 45.12% | 46.75% | 48.08% | 42.50% | 42.71% | 40.82% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | 11.30% | 11.17% | 11.12% | 11.27% | 11.53% | 11.69% | 12.05% | 11.95% | 11.74% | — | — | — | — | — | — | — | — | ||||||
| Adobe Inc. | 26.32% | 27.01% | 28.00% | 29.29% | 29.90% | 30.55% | 38.67% | 38.79% | 40.68% | 40.88% | 31.05% | 30.71% | 27.72% | — | — | — | — | ||||||
| AppLovin Corp. | -2.82% | -6.84% | -2.82% | -3.61% | -2.46% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Cadence Design Systems Inc. | 23.23% | 23.84% | 22.86% | 23.61% | 23.59% | 23.29% | 23.30% | 23.47% | 23.34% | — | — | — | — | — | — | — | — | ||||||
| CrowdStrike Holdings Inc. | -11.08% | -16.18% | -16.48% | -16.34% | -15.86% | -10.59% | -13.40% | -17.27% | -23.97% | — | — | — | — | — | — | — | — | ||||||
| Datadog Inc. | -4.68% | -2.99% | -0.91% | 0.48% | 0.17% | -2.02% | -5.01% | -7.03% | -6.57% | — | — | — | — | — | — | — | — | ||||||
| International Business Machines Corp. | 3.03% | 2.71% | 2.08% | 9.36% | 9.46% | 10.01% | 7.81% | 8.16% | 7.76% | — | — | — | — | — | — | — | — | ||||||
| Intuit Inc. | 14.10% | 16.23% | 19.44% | 19.03% | 20.28% | 21.41% | 23.93% | 22.64% | 25.10% | — | — | — | — | — | — | — | — | ||||||
| Microsoft Corp. | 34.37% | 36.69% | 37.63% | 38.50% | 38.51% | 36.45% | 35.02% | 33.47% | 32.29% | — | — | — | — | — | — | — | — | ||||||
| Oracle Corp. | 13.15% | 15.83% | 18.08% | 24.79% | 34.16% | 33.96% | 32.32% | 26.34% | 26.13% | — | — | — | — | — | — | — | — | ||||||
| Palantir Technologies Inc. | -12.87% | -19.61% | -30.64% | -30.90% | -30.25% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Palo Alto Networks Inc. | -2.46% | -4.85% | -7.54% | -9.50% | -11.20% | -11.72% | -11.00% | -9.73% | -8.36% | — | — | — | — | — | — | — | — | ||||||
| Salesforce Inc. | 3.59% | 5.45% | 6.96% | 9.99% | 19.87% | 19.16% | 17.53% | 12.21% | -0.92% | — | — | — | — | — | — | — | — | ||||||
| ServiceNow Inc. | 5.25% | 4.49% | 2.90% | 2.79% | 3.56% | 3.90% | 3.99% | 3.30% | 3.15% | — | — | — | — | — | — | — | — | ||||||
| Synopsys Inc. | 18.22% | 19.38% | 20.86% | 21.19% | 20.18% | 18.02% | 18.48% | 20.27% | 18.91% | 18.03% | 17.88% | 13.96% | 14.31% | — | — | — | — | ||||||
| Workday Inc. | -0.49% | 0.57% | 0.63% | -0.79% | -3.81% | -6.54% | -8.14% | -10.77% | -13.68% | — | — | — | — | — | — | — | — | ||||||
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).
1 Q1 2023 Calculation
Net profit margin = 100
× (Net incomeQ1 2023
+ Net incomeQ4 2022
+ Net incomeQ3 2022
+ Net incomeQ2 2022)
÷ (Net revenueQ1 2023
+ Net revenueQ4 2022
+ Net revenueQ3 2022
+ Net revenueQ2 2022)
= 100 × (2,361 + 2,525 + 2,499 + 2,275)
÷ (5,748 + 5,817 + 5,756 + 5,497)
= 42.33%
2 Click competitor name to see calculations.
- Net Income
- The net income demonstrates noticeable quarterly fluctuations over the observed period. From the beginning of 2019 through 2019's end, net income showed a general rising trend, peaking around the third and fourth quarters. However, in 2020, there was a clear decline in net income during the first two quarters, reaching a trough in the second quarter, likely influenced by external economic factors during that period. This was followed by a recovery and gradual increase in the latter part of 2020 and throughout 2021, reaching the highest values in late 2021 and early 2022. Afterward, net income exhibited some variability but generally maintained relatively high levels compared to the 2020 low, with a slight downward movement toward the first quarter of 2023.
- Net Revenue
- Net revenue trends closely mirror net income movements but present a steadier, overall growth trajectory. The revenue increases steadily from early 2019, with a small contraction in the first half of 2020, corresponding with the economic downturn observed. Revenue gains resumed in the second half of 2020 and maintained a strong upward trajectory through 2021 and most of 2022. Revenue peaked in the last two quarters of 2022 and experienced a minor decline entering 2023. This pattern suggests a resilient revenue base with some sensitivity to broader economic conditions but a general capacity to grow over time.
- Net Profit Margin
- Net profit margin percentages indicate fluctuations in profitability efficiency across the quarters. The margin reached its highest levels around the end of 2019, suggesting exceptionally efficient operations or favorable cost structures at that time. A slight declining trend occurred during 2020, although margins remained relatively robust despite decreased net income and revenue, showing an ability to manage profitability during economic stress. In 2021 and 2022, margins again showed strength, hovering consistently above 44% and peaking near 48%. The slight decrease in the first quarter of 2023 suggests some pressure on profit efficiency, possibly due to cost increases or slower revenue growth relative to expenses.
- Overall Analysis
- The financial data indicates resilience and adaptability in revenue generation and profitability over multiple economic cycles, including a notable downturn in early 2020. The company demonstrated a strong recovery in both revenue and net income following this period, accompanied by consistently high profit margins relative to industry standards. Recent quarters show slight moderation in profit margins and net income despite sustained revenue levels, which may warrant close monitoring of cost management and market conditions moving forward.
Return on Equity (ROE)
Mastercard Inc., ROE 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income | 2,361) | 2,525) | 2,499) | 2,275) | 2,631) | 2,379) | 2,414) | 2,066) | 1,828) | 1,785) | 1,513) | 1,420) | 1,693) | 2,100) | 2,108) | 2,048) | 1,862) | ||||||
| Total Mastercard Incorporated stockholders’ equity | 5,330) | 6,298) | 6,361) | 6,171) | 7,034) | 7,312) | 6,703) | 6,442) | 6,327) | 6,391) | 5,796) | 6,470) | 5,398) | 5,893) | 4,949) | 5,008) | 5,168) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROE1 | 181.24% | 157.67% | 153.81% | 157.17% | 134.92% | 118.80% | 120.74% | 111.64% | 103.46% | 100.31% | 116.05% | 113.15% | 147.26% | 137.76% | 139.77% | 133.95% | 120.53% | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | 30.69% | 31.11% | 30.99% | 31.09% | 30.45% | 30.25% | 29.87% | 29.81% | 29.33% | — | — | — | — | — | — | — | — | ||||||
| Adobe Inc. | 33.35% | 33.85% | 33.49% | 34.96% | 35.04% | 32.59% | 40.51% | 40.30% | 41.09% | 39.66% | 32.97% | 34.00% | 30.89% | — | — | — | — | ||||||
| AppLovin Corp. | -4.32% | -10.13% | -4.35% | -5.53% | -3.44% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Cadence Design Systems Inc. | 29.09% | 30.93% | 28.99% | 29.53% | 26.96% | 25.39% | 26.34% | 26.96% | 25.72% | — | — | — | — | — | — | — | — | ||||||
| CrowdStrike Holdings Inc. | -16.44% | -22.89% | -22.34% | -20.56% | -18.66% | -10.64% | -12.54% | -14.29% | -17.95% | — | — | — | — | — | — | — | — | ||||||
| Datadog Inc. | -5.55% | -3.56% | -1.08% | 0.54% | 0.18% | -1.99% | -4.60% | -5.89% | -5.24% | — | — | — | — | — | — | — | — | ||||||
| International Business Machines Corp. | 8.48% | 7.47% | 6.29% | 28.79% | 28.98% | 30.38% | 21.44% | 24.31% | 25.11% | — | — | — | — | — | — | — | — | ||||||
| Intuit Inc. | 11.69% | 12.57% | 14.75% | 13.93% | 21.49% | 20.89% | 21.37% | 19.70% | 37.50% | — | — | — | — | — | — | — | — | ||||||
| Microsoft Corp. | 40.21% | 43.68% | 44.47% | 44.49% | 44.67% | 43.15% | 41.65% | 39.40% | 38.49% | — | — | — | — | — | — | — | — | ||||||
| Oracle Corp. | — | — | — | — | — | 262.43% | 144.16% | 131.11% | 107.99% | — | — | — | — | — | — | — | — | ||||||
| Palantir Technologies Inc. | -9.38% | -14.57% | -23.50% | -22.95% | -21.07% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Palo Alto Networks Inc. | -28.23% | -127.14% | -115.40% | -391.77% | -98.34% | -78.63% | -43.97% | -35.50% | -40.11% | — | — | — | — | — | — | — | — | ||||||
| Salesforce Inc. | 1.70% | 2.48% | 3.05% | 4.24% | 10.44% | 9.81% | 8.82% | 6.16% | -0.48% | — | — | — | — | — | — | — | — | ||||||
| ServiceNow Inc. | 7.14% | 6.46% | 4.44% | 4.39% | 5.58% | 6.22% | 6.24% | 5.21% | 5.01% | — | — | — | — | — | — | — | — | ||||||
| Synopsys Inc. | 16.72% | 17.85% | 18.42% | 18.13% | 16.87% | 14.31% | 14.63% | 15.88% | 14.80% | 13.54% | 13.66% | 11.10% | 11.64% | — | — | — | — | ||||||
| Workday Inc. | -0.55% | 0.65% | 0.73% | -0.95% | -5.01% | -8.62% | -11.00% | -15.15% | -20.09% | — | — | — | — | — | — | — | — | ||||||
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).
1 Q1 2023 Calculation
ROE = 100
× (Net incomeQ1 2023
+ Net incomeQ4 2022
+ Net incomeQ3 2022
+ Net incomeQ2 2022)
÷ Total Mastercard Incorporated stockholders’ equity
= 100 × (2,361 + 2,525 + 2,499 + 2,275)
÷ 5,330 = 181.24%
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals distinct patterns and trends in net income, stockholders’ equity, and return on equity (ROE) over the examined periods.
- Net Income
- Net income initially demonstrated growth from 1,862 million US dollars in March 2019 to a peak of 2,108 million in September 2019. Subsequently, it experienced a decline through mid-2020, reaching a low of 1,420 million in June 2020, likely reflecting adverse market conditions during that period. Thereafter, net income showed a recovery trend, rising steadily from the second half of 2020 into late 2021, peaking at 2,414 million in September 2021. Afterward, the figures fluctuated, with a slight decrease at the end of 2021, followed by a renewed increase in early 2022, reaching a near-high of 2,631 million by March 2022. The most recent quarters through March 2023 indicate a moderation in net income, with amounts hovering around 2,300 to 2,500 million US dollars, reflecting some variability but generally maintaining elevated levels compared to the early periods.
- Total Stockholders’ Equity
- Stockholders’ equity showed moderate volatility across the timeline. Starting at 5,168 million US dollars in March 2019, equity dipped slightly during mid and late 2019 but experienced an increase by mid-2020, peaking at 6,470 million in June 2020. However, this was followed by oscillations without a clear sustained upward or downward trend through 2021 and 2022. Notably, equity declined notably towards the end of the data period, with the figure falling to 5,330 million by March 2023, which is below initial levels seen in early 2019. This suggests potential share repurchases, dividend payments, or changes in retained earnings impacting equity.
- Return on Equity (ROE)
- ROE values consistently exceeded 100% across all quarters, indicating a high level of net income generation relative to shareholders’ equity. The ratio rose from approximately 121% in March 2019 to peak at 147% early in 2020, then fell to around 100% by the end of 2020. From 2021 onward, ROE trended upward again, reaching a maximum of over 180% in March 2023. This dramatic ROE increase, despite the fluctuating and sometimes declining equity base, suggests strong profitability and efficient capital utilization. The high ROE, in some instances over 150%, may indicate leverage effects or other factors affecting the equity base. Overall, ROE exhibited substantial resilience and improvement, particularly in the later periods.
In summary, net income shows a recovery trend following a mid-2020 dip, with generally increasing profitability in recent quarters. Stockholders’ equity presents a more variable pattern with an overall decline in the latest quarter, while ROE demonstrates strong performance and improving efficiency, underscoring favorable returns despite fluctuations in equity.
Return on Assets (ROA)
Mastercard Inc., ROA 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income | 2,361) | 2,525) | 2,499) | 2,275) | 2,631) | 2,379) | 2,414) | 2,066) | 1,828) | 1,785) | 1,513) | 1,420) | 1,693) | 2,100) | 2,108) | 2,048) | 1,862) | ||||||
| Total assets | 38,936) | 38,724) | 37,612) | 36,231) | 37,163) | 37,669) | 35,410) | 34,911) | 34,800) | 33,584) | 31,594) | 32,127) | 30,648) | 29,236) | 25,981) | 24,731) | 23,520) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROA1 | 24.81% | 25.64% | 26.01% | 26.77% | 25.54% | 23.06% | 22.86% | 20.60% | 18.81% | 19.09% | 21.29% | 22.79% | 25.94% | 27.77% | 26.62% | 27.12% | 26.48% | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | 14.97% | 14.55% | 14.38% | 14.42% | 14.19% | 13.68% | 13.72% | 13.65% | 13.72% | — | — | — | — | — | — | — | — | ||||||
| Adobe Inc. | 17.76% | 17.51% | 18.00% | 18.57% | 18.58% | 17.70% | 22.33% | 21.82% | 22.28% | 21.66% | 17.23% | 17.13% | 15.24% | — | — | — | — | ||||||
| AppLovin Corp. | -1.39% | -3.30% | -1.41% | -1.78% | -1.12% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Cadence Design Systems Inc. | 16.54% | 16.53% | 15.80% | 17.77% | 16.93% | 15.87% | 16.45% | 16.46% | 16.35% | — | — | — | — | — | — | — | — | ||||||
| CrowdStrike Holdings Inc. | -4.73% | -6.49% | -6.42% | -5.93% | -5.50% | -3.39% | -5.83% | -6.99% | -8.89% | — | — | — | — | — | — | — | — | ||||||
| Datadog Inc. | -2.67% | -1.67% | -0.50% | 0.25% | 0.08% | -0.87% | -2.01% | -2.59% | -2.26% | — | — | — | — | — | — | — | — | ||||||
| International Business Machines Corp. | 1.37% | 1.29% | 1.00% | 4.38% | 4.14% | 4.35% | 3.30% | 3.63% | 3.61% | — | — | — | — | — | — | — | — | ||||||
| Intuit Inc. | 6.93% | 7.45% | 8.77% | 8.26% | 14.07% | 13.29% | 13.50% | 11.97% | 20.26% | — | — | — | — | — | — | — | — | ||||||
| Microsoft Corp. | 19.40% | 19.94% | 21.03% | 20.91% | 20.24% | 18.36% | 18.13% | 16.87% | 15.78% | — | — | — | — | — | — | — | — | ||||||
| Oracle Corp. | 4.46% | 6.15% | 6.96% | 9.60% | 11.35% | 10.48% | 10.86% | 9.44% | 9.03% | — | — | — | — | — | — | — | — | ||||||
| Palantir Technologies Inc. | -6.94% | -10.80% | -16.90% | -16.42% | -15.01% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Palo Alto Networks Inc. | -1.14% | -2.18% | -3.51% | -4.44% | -4.89% | -4.87% | -4.59% | -3.88% | -3.43% | — | — | — | — | — | — | — | — | ||||||
| Salesforce Inc. | 1.08% | 1.52% | 1.99% | 2.65% | 6.85% | 6.14% | 6.01% | 4.10% | -0.31% | — | — | — | — | — | — | — | — | ||||||
| ServiceNow Inc. | 2.94% | 2.44% | 1.81% | 1.66% | 2.03% | 2.13% | 2.33% | 1.86% | 1.73% | — | — | — | — | — | — | — | — | ||||||
| Synopsys Inc. | 9.85% | 10.45% | 11.07% | 10.95% | 10.21% | 8.66% | 8.88% | 9.69% | 9.02% | 8.27% | 8.19% | 6.48% | 6.70% | — | — | — | — | ||||||
| Workday Inc. | -0.21% | 0.28% | 0.33% | -0.40% | -1.98% | -3.24% | -4.32% | -5.73% | -7.23% | — | — | — | — | — | — | — | — | ||||||
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).
1 Q1 2023 Calculation
ROA = 100
× (Net incomeQ1 2023
+ Net incomeQ4 2022
+ Net incomeQ3 2022
+ Net incomeQ2 2022)
÷ Total assets
= 100 × (2,361 + 2,525 + 2,499 + 2,275)
÷ 38,936 = 24.81%
2 Click competitor name to see calculations.
The financial analysis reveals several important trends over the periods observed. Net income demonstrated overall growth from the first quarter of 2019 through the end of 2021, rising from 1,862 million USD to a peak of 2,414 million USD in the third quarter of 2021. A notable decline followed in 2020, particularly in the first half, with net income dropping from 1,693 million USD in the first quarter of 2020 to 1,420 million USD in the second quarter, likely reflecting challenging conditions during that period. After peaking in late 2021, net income showed some fluctuation but remained relatively high, ending at 2,361 million USD in the first quarter of 2023.
Total assets exhibited a steady upward trajectory throughout the period. Beginning at 23,520 million USD in the first quarter of 2019, total assets grew consistently, reaching 38,936 million USD by the first quarter of 2023. This steady asset growth suggests ongoing investment and expansion activities.
Return on assets (ROA) experienced fluctuations with a declining trend during 2020, falling from 25.94% in the first quarter to 19.09% by the fourth quarter, indicative of decreasing profitability relative to asset base during that time. Subsequently, ROA improved gradually, recovering to values above 25% in the early quarters of 2022. The slight decline toward the end of the observed period brought ROA to 24.81% in the first quarter of 2023, indicating a modest reduction but still reflecting efficient asset utilization overall.
- Summary of Key Patterns
- - Net income showed recovery and growth following a dip in 2020, with notable strength during 2021 and early 2022.
- - Total assets increased steadily, indicating continued asset accumulation and possibly capital investment.
- - ROA declined sharply in 2020 but rebounded in 2021 and early 2022, maintaining levels above 20%, which suggests sustained profitability despite variability in net income and asset base.