An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)
Adjustments to Financial Statements for Operating Leases
Adjusted Financial Ratios for Operating Leases (Summary)
Adjusted Total Asset Turnover
Adjusted Debt to Equity
Adjusted Return on Assets (ROA)

Visa Inc., future operating lease payments (before adoption of FASB Topic 842)

US$ in millions

	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
Total undiscounted future operating lease payments	—	—	—	798)	747)	626)
Discount rate¹	—	—	—	3.31%	3.31%	3.12%

Total present value of future operating lease payments	—	—	—	701)	667)	561)

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

¹ Weighted-average interest rate for Visa Inc. debt

2019 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 3.31%
2020	143)	2020	143)	138)
2021	121)	2021	121)	113)
2022	106)	2022	106)	96)
2023	96)	2023	96)	84)
2024	82)	2024	82)	70)
2025 and thereafter	250)	2025	82)	67)
		2026	82)	65)
		2027	82)	63)
		2028	4)	3)
Total:	798)		798)	701)

Based on: 10-K (reporting date: 2019-09-30).

2018 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 3.31%
2019	180)	2019	180)	174)
2020	123)	2020	123)	115)
2021	102)	2021	102)	93)
2022	89)	2022	89)	78)
2023	75)	2023	75)	64)
2024 and thereafter	178)	2024	75)	62)
		2025	75)	60)
		2026	28)	22)
Total:	747)		747)	667)

Based on: 10-K (reporting date: 2018-09-30).

2017 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 3.12%
2018	155)	2018	155)	150)
2019	119)	2019	119)	112)
2020	68)	2020	68)	62)
2021	64)	2021	64)	57)
2022	57)	2022	57)	49)
2023 and thereafter	163)	2023	57)	47)
		2024	57)	46)
		2025	49)	38)
Total:	626)		626)	561)

Based on: 10-K (reporting date: 2017-09-30).

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Visa Inc., adjustments to financial statements

US$ in millions

	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
Adjustment to Total Assets
Total assets (as reported)	85,501)	82,896)	80,919)	72,574)	69,225)	67,977)
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—)	—)	—)	701)	667)	561)
Total assets (adjusted)	85,501)	82,896)	80,919)	73,275)	69,892)	68,538)
Adjustment to Total Debt
Total debt (as reported)	22,450)	20,977)	24,070)	16,729)	16,630)	18,367)
Add: Operating lease liability (before adoption of FASB Topic 842)²	—)	—)	—)	701)	667)	561)
Add: Current portion of operating lease liabilities (included in Accrued liabilities)	98)	103)	97)	—)	—)	—)
Add: Long-term portion of operating lease liabilities (included in Other liabilities)	422)	471)	473)	—)	—)	—)
Total debt (adjusted)	22,970)	21,551)	24,640)	17,430)	17,297)	18,928)

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

^{1, 2} Equal to total present value of future operating lease payments.

Visa Inc., Financial Data: Reported vs. Adjusted

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Visa Inc., adjusted financial ratios

	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
Total Asset Turnover¹
Reported total asset turnover	0.34	0.29	0.27	0.32	0.30	0.27
Adjusted total asset turnover	0.34	0.29	0.27	0.31	0.29	0.27
Debt to Equity²
Reported debt to equity	0.63	0.56	0.66	0.48	0.49	0.56
Adjusted debt to equity	0.65	0.57	0.68	0.50	0.51	0.58
Return on Assets³ (ROA)
Reported ROA	17.49%	14.85%	13.43%	16.65%	14.88%	9.85%
Adjusted ROA	17.49%	14.85%	13.43%	16.49%	14.74%	9.77%

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

¹ See details »

² See details »

³ See details »

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Visa Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted debt to equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	Visa Inc. adjusted debt to equity ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Visa Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

Visa Inc., Financial Ratios: Reported vs. Adjusted

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	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
As Reported
Selected Financial Data (US$ in millions)
Net revenues	29,310)	24,105)	21,846)	22,977)	20,609)	18,358)
Total assets	85,501)	82,896)	80,919)	72,574)	69,225)	67,977)
Activity Ratio
Total asset turnover¹	0.34	0.29	0.27	0.32	0.30	0.27
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net revenues	29,310)	24,105)	21,846)	22,977)	20,609)	18,358)
Adjusted total assets	85,501)	82,896)	80,919)	73,275)	69,892)	68,538)
Activity Ratio
Adjusted total asset turnover²	0.34	0.29	0.27	0.31	0.29	0.27

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

2022 Calculations

¹ Total asset turnover = Net revenues ÷ Total assets
= 29,310 ÷ 85,501 = 0.34

² Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 29,310 ÷ 85,501 = 0.34

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Visa Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
As Reported
Selected Financial Data (US$ in millions)
Total debt	22,450)	20,977)	24,070)	16,729)	16,630)	18,367)
Equity	35,581)	37,589)	36,210)	34,684)	34,006)	32,760)
Solvency Ratio
Debt to equity¹	0.63	0.56	0.66	0.48	0.49	0.56
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt	22,970)	21,551)	24,640)	17,430)	17,297)	18,928)
Equity	35,581)	37,589)	36,210)	34,684)	34,006)	32,760)
Solvency Ratio
Adjusted debt to equity²	0.65	0.57	0.68	0.50	0.51	0.58

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

2022 Calculations

¹ Debt to equity = Total debt ÷ Equity
= 22,450 ÷ 35,581 = 0.63

² Adjusted debt to equity = Adjusted total debt ÷ Equity
= 22,970 ÷ 35,581 = 0.65

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Solvency ratio	Description	The company
Adjusted debt-to-equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	Visa Inc. adjusted debt-to-equity ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income	14,957)	12,311)	10,866)	12,080)	10,301)	6,699)
Total assets	85,501)	82,896)	80,919)	72,574)	69,225)	67,977)
Profitability Ratio
ROA¹	17.49%	14.85%	13.43%	16.65%	14.88%	9.85%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income	14,957)	12,311)	10,866)	12,080)	10,301)	6,699)
Adjusted total assets	85,501)	82,896)	80,919)	73,275)	69,892)	68,538)
Profitability Ratio
Adjusted ROA²	17.49%	14.85%	13.43%	16.49%	14.74%	9.77%

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

2022 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 14,957 ÷ 85,501 = 17.49%

² Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 14,957 ÷ 85,501 = 17.49%

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

Visa Inc. (NYSE:V)

Analysis of Operating Leases

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)

Adjustments to Financial Statements for Operating Leases

Visa Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios for Operating Leases (Summary)

Visa Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Debt to Equity

Adjusted Return on Assets (ROA)