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).
The analysis of the annual debt figures reveals several notable trends over the five-year period from 2018 to 2022.
- Short-term debt
- The short-term debt experienced fluctuations during the period. It started at 500 million USD in 2018, increased to 649 million USD in 2020, and peaked at 792 million USD in 2021 before significantly decreasing to 274 million USD in 2022. The data for 2019 is unavailable, which limits a complete view of yearly progression.
- Long-term debt, excluding current portion
- Long-term debt displayed a consistent upward trajectory throughout the five years. Starting at 5,834 million USD in 2018, it rose substantially to 8,527 million USD in 2019, followed by further increases to 12,023 million USD in 2020, then to 13,109 million USD in 2021, and finally reaching 13,749 million USD in 2022. This steady rise indicates a strategic expansion or refinancing activity increasing long-term liabilities.
- Total long-term debt, including the current portion (carrying amount)
- The total long-term debt, inclusive of current portions, mirrored the growth trend seen in long-term debt. Beginning at 6,334 million USD in 2018, it grew to 8,527 million USD in 2019, then to 12,672 million USD in 2020, followed by 13,901 million USD in 2021, and finally 14,023 million USD in 2022. The smaller incremental increases from 2021 to 2022 suggest a potential stabilization phase in overall long-term liabilities.
Overall, the data indicates a clear expansion in long-term debt over the analyzed period, while short-term debt shows variability with an overall decline in the most recent year. The company's leverage strategy appears to increasingly rely on long-term borrowing, possibly aiming for greater financial stability or investment in growth opportunities.
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%