Mastercard Inc., adjustment to net income

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income (as reported)	9,930)	8,687)	6,411)	8,118)	5,859)
Add: Investment securities available-for-sale, net of income tax effect	(5)	(1)	(1)	2)	(2)
Net income (adjusted)	9,925)	8,686)	6,410)	8,120)	5,857)

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Mastercard Inc., adjusted profitability ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net Profit Margin
Reported net profit margin	44.66%	46.00%	41.90%	48.08%	39.19%
Adjusted net profit margin	44.63%	46.00%	41.89%	48.10%	39.18%
Return on Equity (ROE)
Reported ROE	157.67%	118.80%	100.31%	137.76%	108.60%
Adjusted ROE	157.59%	118.79%	100.30%	137.79%	108.56%
Return on Assets (ROA)
Reported ROA	25.64%	23.06%	19.09%	27.77%	23.57%
Adjusted ROA	25.63%	23.06%	19.09%	27.77%	23.56%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Mastercard Inc. adjusted net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Mastercard Inc. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Mastercard Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

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	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)
Net revenue	22,237)	18,884)	15,301)	16,883)	14,950)
Profitability Ratio
Net profit margin¹	44.66%	46.00%	41.90%	48.08%	39.19%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	9,925)	8,686)	6,410)	8,120)	5,857)
Net revenue	22,237)	18,884)	15,301)	16,883)	14,950)
Profitability Ratio
Adjusted net profit margin²	44.63%	46.00%	41.89%	48.10%	39.18%

2022 Calculations

¹ Net profit margin = 100 × Net income ÷ Net revenue
= 100 × 9,930 ÷ 22,237 = 44.66%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Net revenue
= 100 × 9,925 ÷ 22,237 = 44.63%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Mastercard Inc. adjusted net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

	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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	9,925)	8,686)	6,410)	8,120)	5,857)
Total Mastercard Incorporated stockholders’ equity	6,298)	7,312)	6,391)	5,893)	5,395)
Profitability Ratio
Adjusted ROE²	157.59%	118.79%	100.30%	137.79%	108.56%

2022 Calculations

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

² Adjusted ROE = 100 × Adjusted net income ÷ Total Mastercard Incorporated stockholders’ equity
= 100 × 9,925 ÷ 6,298 = 157.59%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Mastercard Inc. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.

	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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	9,925)	8,686)	6,410)	8,120)	5,857)
Total assets	38,724)	37,669)	33,584)	29,236)	24,860)
Profitability Ratio
Adjusted ROA²	25.63%	23.06%	19.09%	27.77%	23.56%

2022 Calculations

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

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 9,925 ÷ 38,724 = 25.63%

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

Mastercard Inc. (NYSE:MA)

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