Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Visa Inc., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Visa Inc. debt to equity ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Visa Inc. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Visa Inc. debt to capital ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Visa Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Visa Inc. debt to assets ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Visa Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Visa Inc. financial leverage ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Visa Inc. interest coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Visa Inc. fixed charge coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Equity
Visa Inc., debt to equity calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current maturities of debt | 2,250) | 999) | 2,999) | —) | —) | 1,749) | |
| Long-term debt, excluding current maturities | 20,200) | 19,978) | 21,071) | 16,729) | 16,630) | 16,618) | |
| 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 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Accenture PLC | 0.00 | 0.00 | 0.00 | 0.00 | — | — | |
| Adobe Inc. | 0.29 | 0.28 | 0.31 | 0.39 | 0.44 | — | |
| Autodesk Inc. | 3.09 | 1.70 | — | — | — | — | |
| Cadence Design Systems Inc. | 0.27 | 0.13 | 0.14 | 0.16 | — | — | |
| CrowdStrike Holdings Inc. | 0.72 | 0.85 | 0.00 | — | — | — | |
| International Business Machines Corp. | 2.32 | 2.74 | 2.99 | 3.02 | — | — | |
| Intuit Inc. | 0.42 | 0.21 | 0.66 | 0.12 | — | — | |
| Microsoft Corp. | 0.39 | 0.50 | 0.62 | 0.77 | — | — | |
| Oracle Corp. | — | 16.08 | 5.93 | 2.58 | — | — | |
| Palo Alto Networks Inc. | 17.51 | 5.08 | 2.80 | 0.90 | — | — | |
| Salesforce Inc. | 0.19 | 0.07 | 0.09 | 0.22 | — | — | |
| ServiceNow Inc. | 0.30 | 0.43 | 0.58 | 0.33 | — | — | |
| Synopsys Inc. | 0.00 | 0.02 | 0.03 | 0.03 | 0.13 | — | |
| Debt to Equity, Sector | |||||||
| Software & Services | 0.72 | 0.84 | 0.96 | 1.06 | — | — | |
| Debt to Equity, Industry | |||||||
| Information Technology | 0.67 | 0.76 | 0.87 | 0.87 | — | — | |
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 2022 Calculation
Debt to equity = Total debt ÷ Equity
= 22,450 ÷ 35,581 = 0.63
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Visa Inc. debt to equity ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Debt to Equity (including Operating Lease Liability)
Visa Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current maturities of debt | 2,250) | 999) | 2,999) | —) | —) | 1,749) | |
| Long-term debt, excluding current maturities | 20,200) | 19,978) | 21,071) | 16,729) | 16,630) | 16,618) | |
| Total debt | 22,450) | 20,977) | 24,070) | 16,729) | 16,630) | 18,367) | |
| Current portion of operating lease liabilities (included in Accrued liabilities) | 98) | 103) | 97) | —) | —) | —) | |
| Long-term portion of operating lease liabilities (included in Other liabilities) | 422) | 471) | 473) | —) | —) | —) | |
| Total debt (including operating lease liability) | 22,970) | 21,551) | 24,640) | 16,729) | 16,630) | 18,367) | |
| Equity | 35,581) | 37,589) | 36,210) | 34,684) | 34,006) | 32,760) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 0.65 | 0.57 | 0.68 | 0.48 | 0.49 | 0.56 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | 0.15 | 0.18 | 0.21 | 0.00 | — | — | |
| Adobe Inc. | 0.33 | 0.32 | 0.35 | 0.39 | 0.44 | — | |
| Autodesk Inc. | 3.60 | 2.18 | — | — | — | — | |
| Cadence Design Systems Inc. | 0.34 | 0.18 | 0.20 | 0.22 | — | — | |
| CrowdStrike Holdings Inc. | 0.76 | 0.89 | 0.00 | — | — | — | |
| International Business Machines Corp. | 2.46 | 2.92 | 3.23 | 3.27 | — | — | |
| Intuit Inc. | 0.46 | 0.25 | 0.71 | 0.12 | — | — | |
| Microsoft Corp. | 0.47 | 0.58 | 0.69 | 0.84 | — | — | |
| Oracle Corp. | — | 16.61 | 6.10 | 2.58 | — | — | |
| Palo Alto Networks Inc. | 19.12 | 5.68 | 3.16 | 0.90 | — | — | |
| Salesforce Inc. | 0.25 | 0.15 | 0.18 | 0.22 | — | — | |
| ServiceNow Inc. | 0.44 | 0.60 | 0.75 | 0.53 | — | — | |
| Synopsys Inc. | 0.12 | 0.13 | 0.14 | 0.03 | 0.13 | — | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Software & Services | 0.82 | 0.94 | 1.08 | 1.13 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.73 | 0.83 | 0.94 | 0.90 | — | — | |
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 2022 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Equity
= 22,970 ÷ 35,581 = 0.65
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Visa Inc. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Debt to Capital
Visa Inc., debt to capital calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current maturities of debt | 2,250) | 999) | 2,999) | —) | —) | 1,749) | |
| Long-term debt, excluding current maturities | 20,200) | 19,978) | 21,071) | 16,729) | 16,630) | 16,618) | |
| 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) | |
| Total capital | 58,031) | 58,566) | 60,280) | 51,413) | 50,636) | 51,127) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.39 | 0.36 | 0.40 | 0.33 | 0.33 | 0.36 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Accenture PLC | 0.00 | 0.00 | 0.00 | 0.00 | — | — | |
| Adobe Inc. | 0.23 | 0.22 | 0.24 | 0.28 | 0.31 | — | |
| Autodesk Inc. | 0.76 | 0.63 | 1.07 | 1.11 | — | — | |
| Cadence Design Systems Inc. | 0.21 | 0.11 | 0.12 | 0.14 | — | — | |
| CrowdStrike Holdings Inc. | 0.42 | 0.46 | 0.00 | — | — | — | |
| International Business Machines Corp. | 0.70 | 0.73 | 0.75 | 0.75 | — | — | |
| Intuit Inc. | 0.30 | 0.17 | 0.40 | 0.10 | — | — | |
| Microsoft Corp. | 0.28 | 0.33 | 0.38 | 0.43 | — | — | |
| Oracle Corp. | 1.09 | 0.94 | 0.86 | 0.72 | — | — | |
| Palo Alto Networks Inc. | 0.95 | 0.84 | 0.74 | 0.47 | — | — | |
| Salesforce Inc. | 0.16 | 0.06 | 0.08 | 0.18 | — | — | |
| ServiceNow Inc. | 0.23 | 0.30 | 0.37 | 0.25 | — | — | |
| Synopsys Inc. | 0.00 | 0.02 | 0.03 | 0.03 | 0.12 | — | |
| Debt to Capital, Sector | |||||||
| Software & Services | 0.42 | 0.46 | 0.49 | 0.51 | — | — | |
| Debt to Capital, Industry | |||||||
| Information Technology | 0.40 | 0.43 | 0.47 | 0.46 | — | — | |
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 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 22,450 ÷ 58,031 = 0.39
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Visa Inc. debt to capital ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Debt to Capital (including Operating Lease Liability)
Visa Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current maturities of debt | 2,250) | 999) | 2,999) | —) | —) | 1,749) | |
| Long-term debt, excluding current maturities | 20,200) | 19,978) | 21,071) | 16,729) | 16,630) | 16,618) | |
| Total debt | 22,450) | 20,977) | 24,070) | 16,729) | 16,630) | 18,367) | |
| Current portion of operating lease liabilities (included in Accrued liabilities) | 98) | 103) | 97) | —) | —) | —) | |
| Long-term portion of operating lease liabilities (included in Other liabilities) | 422) | 471) | 473) | —) | —) | —) | |
| Total debt (including operating lease liability) | 22,970) | 21,551) | 24,640) | 16,729) | 16,630) | 18,367) | |
| Equity | 35,581) | 37,589) | 36,210) | 34,684) | 34,006) | 32,760) | |
| Total capital (including operating lease liability) | 58,551) | 59,140) | 60,850) | 51,413) | 50,636) | 51,127) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.39 | 0.36 | 0.40 | 0.33 | 0.33 | 0.36 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | 0.13 | 0.15 | 0.17 | 0.00 | — | — | |
| Adobe Inc. | 0.25 | 0.24 | 0.26 | 0.28 | 0.31 | — | |
| Autodesk Inc. | 0.78 | 0.69 | 1.06 | 1.11 | — | — | |
| Cadence Design Systems Inc. | 0.25 | 0.15 | 0.17 | 0.18 | — | — | |
| CrowdStrike Holdings Inc. | 0.43 | 0.47 | 0.00 | — | — | — | |
| International Business Machines Corp. | 0.71 | 0.74 | 0.76 | 0.77 | — | — | |
| Intuit Inc. | 0.31 | 0.20 | 0.42 | 0.10 | — | — | |
| Microsoft Corp. | 0.32 | 0.37 | 0.41 | 0.46 | — | — | |
| Oracle Corp. | 1.08 | 0.94 | 0.86 | 0.72 | — | — | |
| Palo Alto Networks Inc. | 0.95 | 0.85 | 0.76 | 0.47 | — | — | |
| Salesforce Inc. | 0.20 | 0.13 | 0.16 | 0.18 | — | — | |
| ServiceNow Inc. | 0.31 | 0.37 | 0.43 | 0.35 | — | — | |
| Synopsys Inc. | 0.11 | 0.11 | 0.12 | 0.03 | 0.12 | — | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Software & Services | 0.45 | 0.49 | 0.52 | 0.53 | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.42 | 0.45 | 0.49 | 0.47 | — | — | |
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 2022 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 22,970 ÷ 58,551 = 0.39
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Visa Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Debt to Assets
Visa Inc., debt to assets calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current maturities of debt | 2,250) | 999) | 2,999) | —) | —) | 1,749) | |
| Long-term debt, excluding current maturities | 20,200) | 19,978) | 21,071) | 16,729) | 16,630) | 16,618) | |
| Total debt | 22,450) | 20,977) | 24,070) | 16,729) | 16,630) | 18,367) | |
| Total assets | 85,501) | 82,896) | 80,919) | 72,574) | 69,225) | 67,977) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.26 | 0.25 | 0.30 | 0.23 | 0.24 | 0.27 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Accenture PLC | 0.00 | 0.00 | 0.00 | 0.00 | — | — | |
| Adobe Inc. | 0.15 | 0.15 | 0.17 | 0.20 | 0.22 | — | |
| Autodesk Inc. | 0.31 | 0.22 | 0.34 | 0.44 | — | — | |
| Cadence Design Systems Inc. | 0.15 | 0.08 | 0.09 | 0.10 | — | — | |
| CrowdStrike Holdings Inc. | 0.20 | 0.27 | 0.00 | — | — | — | |
| International Business Machines Corp. | 0.40 | 0.39 | 0.39 | 0.41 | — | — | |
| Intuit Inc. | 0.25 | 0.13 | 0.31 | 0.07 | — | — | |
| Microsoft Corp. | 0.18 | 0.21 | 0.24 | 0.27 | — | — | |
| Oracle Corp. | 0.69 | 0.64 | 0.62 | 0.52 | — | — | |
| Palo Alto Networks Inc. | 0.30 | 0.31 | 0.34 | 0.22 | — | — | |
| Salesforce Inc. | 0.12 | 0.04 | 0.06 | 0.11 | — | — | |
| ServiceNow Inc. | 0.11 | 0.15 | 0.19 | 0.12 | — | — | |
| Synopsys Inc. | 0.00 | 0.01 | 0.02 | 0.02 | 0.08 | — | |
| Debt to Assets, Sector | |||||||
| Software & Services | 0.26 | 0.28 | 0.30 | 0.32 | — | — | |
| Debt to Assets, Industry | |||||||
| Information Technology | 0.26 | 0.28 | 0.30 | 0.30 | — | — | |
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 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= 22,450 ÷ 85,501 = 0.26
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Visa Inc. debt to assets ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Debt to Assets (including Operating Lease Liability)
Visa Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current maturities of debt | 2,250) | 999) | 2,999) | —) | —) | 1,749) | |
| Long-term debt, excluding current maturities | 20,200) | 19,978) | 21,071) | 16,729) | 16,630) | 16,618) | |
| Total debt | 22,450) | 20,977) | 24,070) | 16,729) | 16,630) | 18,367) | |
| Current portion of operating lease liabilities (included in Accrued liabilities) | 98) | 103) | 97) | —) | —) | —) | |
| Long-term portion of operating lease liabilities (included in Other liabilities) | 422) | 471) | 473) | —) | —) | —) | |
| Total debt (including operating lease liability) | 22,970) | 21,551) | 24,640) | 16,729) | 16,630) | 18,367) | |
| Total assets | 85,501) | 82,896) | 80,919) | 72,574) | 69,225) | 67,977) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.27 | 0.26 | 0.30 | 0.23 | 0.24 | 0.27 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | 0.07 | 0.08 | 0.09 | 0.00 | — | — | |
| Adobe Inc. | 0.17 | 0.17 | 0.19 | 0.20 | 0.22 | — | |
| Autodesk Inc. | 0.36 | 0.29 | 0.41 | 0.44 | — | — | |
| Cadence Design Systems Inc. | 0.18 | 0.11 | 0.13 | 0.14 | — | — | |
| CrowdStrike Holdings Inc. | 0.21 | 0.29 | 0.00 | — | — | — | |
| International Business Machines Corp. | 0.42 | 0.42 | 0.43 | 0.45 | — | — | |
| Intuit Inc. | 0.27 | 0.16 | 0.33 | 0.07 | — | — | |
| Microsoft Corp. | 0.21 | 0.25 | 0.27 | 0.30 | — | — | |
| Oracle Corp. | 0.73 | 0.66 | 0.64 | 0.52 | — | — | |
| Palo Alto Networks Inc. | 0.33 | 0.35 | 0.38 | 0.22 | — | — | |
| Salesforce Inc. | 0.15 | 0.10 | 0.11 | 0.11 | — | — | |
| ServiceNow Inc. | 0.17 | 0.21 | 0.24 | 0.19 | — | — | |
| Synopsys Inc. | 0.07 | 0.08 | 0.08 | 0.02 | 0.08 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Software & Services | 0.30 | 0.32 | 0.34 | 0.34 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.29 | 0.31 | 0.33 | 0.31 | — | — | |
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 2022 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 22,970 ÷ 85,501 = 0.27
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Visa Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Financial Leverage
Visa Inc., financial leverage calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Total assets | 85,501) | 82,896) | 80,919) | 72,574) | 69,225) | 67,977) | |
| Equity | 35,581) | 37,589) | 36,210) | 34,684) | 34,006) | 32,760) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 2.40 | 2.21 | 2.23 | 2.09 | 2.04 | 2.08 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Accenture PLC | 2.14 | 2.21 | 2.18 | 2.07 | — | — | |
| Adobe Inc. | 1.93 | 1.84 | 1.83 | 1.97 | 2.00 | — | |
| Autodesk Inc. | 10.14 | 7.54 | — | — | — | — | |
| Cadence Design Systems Inc. | 1.87 | 1.60 | 1.58 | 1.60 | — | — | |
| CrowdStrike Holdings Inc. | 3.53 | 3.14 | 1.89 | — | — | — | |
| International Business Machines Corp. | 5.80 | 6.98 | 7.57 | 7.30 | — | — | |
| Intuit Inc. | 1.69 | 1.57 | 2.14 | 1.68 | — | — | |
| Microsoft Corp. | 2.19 | 2.35 | 2.55 | 2.80 | — | — | |
| Oracle Corp. | — | 25.03 | 9.56 | 4.99 | — | — | |
| Palo Alto Networks Inc. | 58.35 | 16.14 | 8.23 | 4.16 | — | — | |
| Salesforce Inc. | 1.64 | 1.60 | 1.63 | 1.97 | — | — | |
| ServiceNow Inc. | 2.64 | 2.92 | 3.07 | 2.83 | — | — | |
| Synopsys Inc. | 1.71 | 1.65 | 1.64 | 1.57 | 1.77 | — | |
| Financial Leverage, Sector | |||||||
| Software & Services | 2.76 | 2.98 | 3.18 | 3.33 | — | — | |
| Financial Leverage, Industry | |||||||
| Information Technology | 2.56 | 2.71 | 2.90 | 2.86 | — | — | |
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 2022 Calculation
Financial leverage = Total assets ÷ Equity
= 85,501 ÷ 35,581 = 2.40
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Visa Inc. financial leverage ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level. |
Interest Coverage
Visa Inc., interest coverage calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 14,957) | 12,311) | 10,866) | 12,080) | 10,301) | 6,699) | |
| Add: Income tax expense | 3,179) | 3,752) | 2,924) | 2,804) | 2,505) | 4,995) | |
| Add: Interest expense | 538) | 513) | 516) | 533) | 612) | 563) | |
| Earnings before interest and tax (EBIT) | 18,674) | 16,576) | 14,306) | 15,417) | 13,418) | 12,257) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 34.71 | 32.31 | 27.72 | 28.92 | 21.92 | 21.77 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Accenture PLC | 195.34 | 131.46 | 205.84 | 273.26 | — | — | |
| Adobe Inc. | 54.64 | 51.49 | 37.00 | 21.38 | 32.31 | — | |
| Autodesk Inc. | 9.69 | 11.70 | 6.46 | 0.18 | — | — | |
| Cadence Design Systems Inc. | 46.58 | 46.26 | 31.50 | 26.44 | — | — | |
| CrowdStrike Holdings Inc. | -5.34 | -55.36 | -315.25 | — | — | — | |
| International Business Machines Corp. | 1.97 | 5.20 | 4.62 | 8.58 | — | — | |
| Intuit Inc. | 32.38 | 89.14 | 158.00 | 126.40 | — | — | |
| Microsoft Corp. | 41.58 | 31.31 | 21.47 | 17.27 | — | — | |
| Oracle Corp. | 3.84 | 6.28 | 7.13 | 6.97 | — | — | |
| Palo Alto Networks Inc. | -6.56 | -1.85 | -1.61 | 0.11 | — | — | |
| Salesforce Inc. | 8.09 | 24.28 | 7.42 | 8.80 | — | — | |
| ServiceNow Inc. | 15.78 | 9.89 | 5.56 | 3.02 | — | — | |
| Synopsys Inc. | 657.96 | 240.38 | 125.16 | 47.79 | 24.29 | — | |
| Interest Coverage, Sector | |||||||
| Software & Services | 18.23 | 17.67 | 14.41 | 13.00 | — | — | |
| Interest Coverage, Industry | |||||||
| Information Technology | 24.65 | 23.05 | 16.83 | 15.85 | — | — | |
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 2022 Calculation
Interest coverage = EBIT ÷ Interest expense
= 18,674 ÷ 538 = 34.71
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Visa Inc. interest coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
Fixed Charge Coverage
Visa Inc., fixed charge coverage calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 14,957) | 12,311) | 10,866) | 12,080) | 10,301) | 6,699) | |
| Add: Income tax expense | 3,179) | 3,752) | 2,924) | 2,804) | 2,505) | 4,995) | |
| Add: Interest expense | 538) | 513) | 516) | 533) | 612) | 563) | |
| Earnings before interest and tax (EBIT) | 18,674) | 16,576) | 14,306) | 15,417) | 13,418) | 12,257) | |
| Add: Operating lease cost | 117) | 111) | 114) | 286) | 224) | 159) | |
| Earnings before fixed charges and tax | 18,791) | 16,687) | 14,420) | 15,703) | 13,642) | 12,416) | |
| Interest expense | 538) | 513) | 516) | 533) | 612) | 563) | |
| Operating lease cost | 117) | 111) | 114) | 286) | 224) | 159) | |
| Fixed charges | 655) | 624) | 630) | 819) | 836) | 722) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 28.69 | 26.74 | 22.89 | 19.17 | 16.32 | 17.20 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Accenture PLC | 12.25 | 10.41 | 9.66 | 10.07 | — | — | |
| Adobe Inc. | 26.79 | 25.59 | 18.77 | 10.78 | 13.34 | — | |
| Autodesk Inc. | 4.46 | 4.58 | 3.09 | 0.62 | — | — | |
| Cadence Design Systems Inc. | 15.50 | 13.77 | 11.46 | 9.95 | — | — | |
| CrowdStrike Holdings Inc. | -3.39 | -6.40 | -12.01 | — | — | — | |
| International Business Machines Corp. | 1.52 | 3.13 | 2.62 | 4.41 | — | — | |
| Intuit Inc. | 14.67 | 25.58 | 27.48 | 34.00 | — | — | |
| Microsoft Corp. | 19.50 | 16.90 | 12.44 | 10.94 | — | — | |
| Oracle Corp. | 3.22 | 5.17 | 5.68 | 5.50 | — | — | |
| Palo Alto Networks Inc. | -1.18 | -1.09 | -0.52 | 0.41 | — | — | |
| Salesforce Inc. | 2.18 | 2.94 | 1.69 | 3.00 | — | — | |
| ServiceNow Inc. | 3.87 | 2.95 | 2.29 | 1.69 | — | — | |
| Synopsys Inc. | 12.91 | 9.29 | 7.46 | 6.30 | 4.98 | — | |
| Fixed Charge Coverage, Sector | |||||||
| Software & Services | 9.53 | 9.38 | 7.64 | 7.52 | — | — | |
| Fixed Charge Coverage, Industry | |||||||
| Information Technology | 14.17 | 13.49 | 10.22 | 10.45 | — | — | |
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 2022 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 18,791 ÷ 655 = 28.69
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Visa Inc. fixed charge coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |