Stock Analysis on Net

Mastercard Inc. (NYSE:MA)

This company has been moved to the archive! The financial data has not been updated since April 27, 2023.

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Mastercard Inc., balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Goodwill 7,522 7,662 4,960 4,021 2,904
Capitalized software 3,448 2,929 2,276 1,884 1,514
Customer relationships 2,161 2,272 743 621 439
Other 54 59 44 44 46
Finite-lived intangible assets, gross carrying amount 5,663 5,260 3,063 2,549 1,999
Accumulated amortization (1,960) (1,755) (1,489) (1,296) (1,175)
Finite-lived intangible assets, net carrying amount 3,703 3,505 1,574 1,253 824
Customer relationships 156 166 179 164 167
Indefinite-lived intangible assets 156 166 179 164 167
Net intangible assets, other than goodwill 3,859 3,671 1,753 1,417 991
Goodwill and other intangible assets 11,381 11,333 6,713 5,438 3,895

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).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Mastercard Inc. goodwill increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.
Net intangible assets, other than goodwill Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Mastercard Inc. net intangible assets, other than goodwill increased from 2020 to 2021 and from 2021 to 2022.
Goodwill and other intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Mastercard Inc. goodwill and other intangible assets increased from 2020 to 2021 and from 2021 to 2022.

Adjustments to Financial Statements: Removal of Goodwill

Mastercard Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported) 38,724 37,669 33,584 29,236 24,860
Less: Goodwill 7,522 7,662 4,960 4,021 2,904
Total assets (adjusted) 31,202 30,007 28,624 25,215 21,956
Adjustment to Total Mastercard Incorporated Stockholders’ Equity
Total Mastercard Incorporated stockholders’ equity (as reported) 6,298 7,312 6,391 5,893 5,395
Less: Goodwill 7,522 7,662 4,960 4,021 2,904
Total Mastercard Incorporated stockholders’ equity (adjusted) (1,224) (350) 1,431 1,872 2,491

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).


Mastercard Inc., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Goodwill (Summary)

Mastercard Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Total Asset Turnover
Reported total asset turnover 0.57 0.50 0.46 0.58 0.60
Adjusted total asset turnover 0.71 0.63 0.53 0.67 0.68
Financial Leverage
Reported financial leverage 6.15 5.15 5.25 4.96 4.61
Adjusted financial leverage 20.00 13.47 8.81
Return on Equity (ROE)
Reported ROE 157.67% 118.80% 100.31% 137.76% 108.60%
Adjusted ROE 448.01% 433.65% 235.21%
Return on Assets (ROA)
Reported ROA 25.64% 23.06% 19.09% 27.77% 23.57%
Adjusted ROA 31.82% 28.95% 22.40% 32.20% 26.69%

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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Mastercard Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Mastercard Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

Mastercard Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net revenue 22,237 18,884 15,301 16,883 14,950
Total assets 38,724 37,669 33,584 29,236 24,860
Activity Ratio
Total asset turnover1 0.57 0.50 0.46 0.58 0.60
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net revenue 22,237 18,884 15,301 16,883 14,950
Adjusted total assets 31,202 30,007 28,624 25,215 21,956
Activity Ratio
Adjusted total asset turnover2 0.71 0.63 0.53 0.67 0.68

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).

2022 Calculations

1 Total asset turnover = Net revenue ÷ Total assets
= 22,237 ÷ 38,724 = 0.57

2 Adjusted total asset turnover = Net revenue ÷ Adjusted total assets
= 22,237 ÷ 31,202 = 0.71

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

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets 38,724 37,669 33,584 29,236 24,860
Total Mastercard Incorporated stockholders’ equity 6,298 7,312 6,391 5,893 5,395
Solvency Ratio
Financial leverage1 6.15 5.15 5.25 4.96 4.61
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 31,202 30,007 28,624 25,215 21,956
Adjusted total Mastercard Incorporated stockholders’ equity (1,224) (350) 1,431 1,872 2,491
Solvency Ratio
Adjusted financial leverage2 20.00 13.47 8.81

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).

2022 Calculations

1 Financial leverage = Total assets ÷ Total Mastercard Incorporated stockholders’ equity
= 38,724 ÷ 6,298 = 6.15

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Mastercard Incorporated stockholders’ equity
= 31,202 ÷ -1,224 =


Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income 9,930 8,687 6,411 8,118 5,859
Total Mastercard Incorporated stockholders’ equity 6,298 7,312 6,391 5,893 5,395
Profitability Ratio
ROE1 157.67% 118.80% 100.31% 137.76% 108.60%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income 9,930 8,687 6,411 8,118 5,859
Adjusted total Mastercard Incorporated stockholders’ equity (1,224) (350) 1,431 1,872 2,491
Profitability Ratio
Adjusted ROE2 448.01% 433.65% 235.21%

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).

2022 Calculations

1 ROE = 100 × Net income ÷ Total Mastercard Incorporated stockholders’ equity
= 100 × 9,930 ÷ 6,298 = 157.67%

2 Adjusted ROE = 100 × Net income ÷ Adjusted total Mastercard Incorporated stockholders’ equity
= 100 × 9,930 ÷ -1,224 =


Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income 9,930 8,687 6,411 8,118 5,859
Total assets 38,724 37,669 33,584 29,236 24,860
Profitability Ratio
ROA1 25.64% 23.06% 19.09% 27.77% 23.57%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income 9,930 8,687 6,411 8,118 5,859
Adjusted total assets 31,202 30,007 28,624 25,215 21,956
Profitability Ratio
Adjusted ROA2 31.82% 28.95% 22.40% 32.20% 26.69%

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).

2022 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 9,930 ÷ 38,724 = 25.64%

2 Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 9,930 ÷ 31,202 = 31.82%

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