Analysis of Debt
Total Debt (Carrying Amount)
Mastercard Inc., balance sheet: debt
US$ in millions
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).
Between 2018 and 2022, a substantial increase in the total carrying amount of debt was recorded, indicating a significant expansion of the company's leverage. Total long-term debt, including the current portion, increased from 6,334 million US$ in 2018 to 14,023 million US$ by the end of 2022.
- Total Debt Trajectory
- The total debt profile grew by approximately 121% over the five-year period. The most pronounced acceleration occurred between 2019 and 2020, during which total obligations rose by 4,145 million US$, suggesting a period of intensified capital acquisition.
- Long-Term Debt Analysis
- Long-term debt, excluding the current portion, demonstrated a consistent year-over-year increase, rising from 5,834 million US$ in 2018 to 13,749 million US$ in 2022. By the end of the period, this segment represented the overwhelming majority of the total debt, underscoring a financing strategy focused on long-term maturity profiles.
- Short-Term Debt Dynamics
- Short-term debt obligations were characterized by volatility, increasing from 500 million US$ in 2018 to a peak of 792 million US$ in 2021. A significant contraction followed, with the balance falling to 274 million US$ by December 31, 2022, reflecting a reduction in near-term liabilities.
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Total Debt (Fair Value)
| Dec 31, 2022 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Total long-term debt, including the current portion (fair value) | 12,700) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.91 |
Based on: 10-K (reporting date: 2022-12-31).
Weighted-average Interest Rate on Debt
Weighted-average effective interest rate on debt: 3.17%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 1.14% | 800) | 9) | |
| 2.11% | 750) | 16) | |
| 1.98% | 600) | 12) | |
| 3.01% | 700) | 21) | |
| 3.42% | 1,000) | 34) | |
| 3.43% | 1,500) | 51) | |
| 3.90% | 1,500) | 58) | |
| 3.03% | 1,000) | 30) | |
| 3.69% | 1,000) | 37) | |
| 2.15% | 750) | 16) | |
| 3.60% | 500) | 18) | |
| 3.99% | 500) | 20) | |
| 3.04% | 750) | 23) | |
| 3.89% | 600) | 23) | |
| 2.19% | 854) | 19) | |
| 2.56% | 160) | 4) | |
| 3.48% | 1,000) | 35) | |
| 9.09% | 275) | 25) | |
| Total | 14,239) | 452) | |
| 3.17% | |||
Based on: 10-K (reporting date: 2022-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 452 ÷ 14,239 = 3.17%