Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Visa Inc., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Visa Inc. operating profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Visa 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. | Visa Inc. ROE improved from 2020 to 2021 and from 2021 to 2022. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Visa Inc. ROA improved from 2020 to 2021 and from 2021 to 2022. |
Operating Profit Margin
Visa Inc., operating profit margin 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) | |||||||
| Operating income | 18,813) | 15,804) | 14,081) | 15,001) | 12,954) | 12,144) | |
| Net revenues | 29,310) | 24,105) | 21,846) | 22,977) | 20,609) | 18,358) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 64.19% | 65.56% | 64.46% | 65.29% | 62.86% | 66.15% | |
| 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: 2022-09-30), 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
Operating profit margin = 100 × Operating income ÷ Net revenues
= 100 × 18,813 ÷ 29,310 = 64.19%
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. | Visa Inc. operating profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Net Profit Margin
Visa Inc., net profit margin 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) | |
| Net revenues | 29,310) | 24,105) | 21,846) | 22,977) | 20,609) | 18,358) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 51.03% | 51.07% | 49.74% | 52.57% | 49.98% | 36.49% | |
| 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: 2022-09-30), 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
Net profit margin = 100 × Net income ÷ Net revenues
= 100 × 14,957 ÷ 29,310 = 51.03%
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. | Visa Inc. net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Return on Equity (ROE)
Visa Inc., ROE 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) | |
| Equity | 35,581) | 37,589) | 36,210) | 34,684) | 34,006) | 32,760) | |
| Profitability Ratio | |||||||
| ROE1 | 42.04% | 32.75% | 30.01% | 34.83% | 30.29% | 20.45% | |
| 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: 2022-09-30), 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
ROE = 100 × Net income ÷ Equity
= 100 × 14,957 ÷ 35,581 = 42.04%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Visa Inc. ROE improved from 2020 to 2021 and from 2021 to 2022. |
Return on Assets (ROA)
Visa Inc., ROA 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) | |
| 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% | |
| 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: 2022-09-30), 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
ROA = 100 × Net income ÷ Total assets
= 100 × 14,957 ÷ 85,501 = 17.49%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Visa Inc. ROA improved from 2020 to 2021 and from 2021 to 2022. |