Stock Analysis on Net
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.

Common-Size Balance Sheet: Assets 

Mastercard Inc., common-size consolidated balance sheet: assets

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Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Cash and cash equivalents 18.10 19.70 30.11 23.90 26.88
Restricted cash for litigation settlement 1.52 1.56 1.74 2.00 2.22
Investments 1.03 1.26 1.44 2.35 6.82
Accounts receivable 8.84 7.98 7.88 8.60 9.16
Settlement assets 3.28 3.50 5.08 10.24 9.86
Restricted security deposits held for customers 4.05 4.97 5.05 4.69 4.34
Customer and merchant incentives 3.59 3.52 3.23 2.98 3.13
Prepaid income taxes 0.09 0.24 0.23 0.36 0.21
Other 2.38 2.26 2.14 2.69 2.43
Prepaid expenses and other current assets 6.06% 6.03% 5.61% 6.03% 5.76%
Current assets 42.88% 44.99% 56.91% 57.81% 65.05%
Property and equipment, net 3.43 3.28 3.44 3.82 3.70
Operating lease right-of-use assets, net 1.75 1.78 2.23 2.43 0.00
Property, equipment and right-of-use assets, net 5.18% 5.06% 5.66% 6.25% 3.70%
Deferred income taxes 2.97 1.29 1.46 1.86 2.29
Goodwill 19.42 20.34 14.77 13.75 11.68
Other intangible assets, net 9.97 9.75 5.22 4.85 3.99
Customer and merchant incentives 11.82 10.08 9.59 9.71 9.89
Equity investments 4.47 4.87 3.49 3.13 1.36
Income taxes receivable 1.63 1.71 1.65 1.57 1.20
Other 1.65 1.90 1.25 1.07 0.84
Other assets 19.57% 18.57% 15.97% 15.48% 13.29%
Noncurrent assets 57.12% 55.01% 43.09% 42.19% 34.95%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00%

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).

Current Assets Composition and Trend
The proportion of current assets relative to total assets has exhibited a consistent decline from 65.05% in 2018 to 42.88% in 2022. Specifically, cash and cash equivalents, a major component of current assets, decreased notably from 26.88% in 2018 to 18.1% by 2022, reflecting a considerable reduction in liquid assets. Similarly, restricted cash for litigation settlement showed a slight downward trend from 2.22% to 1.52%. Investments also declined steadily, dropping from 6.82% to just above 1%.
Conversely, accounts receivable saw a decline initially but increased again towards the end of the period, moving from 9.16% in 2018 to 8.84% in 2022. Settlement assets exhibited a steep decline from 9.86% to 3.28%, indicating a reduced share of such assets in total assets over the years. Restricted security deposits held for customers showed minor fluctuation but overall declined from 4.34% to 4.05%. Customer and merchant incentives grew slightly, rising from 3.13% to 3.59%, denoting a relative increase in these balances. Prepaid expenses and other current assets remained largely stable around the 6% mark, indicating consistent short-term operational expenditures.
Noncurrent Assets Composition and Trend
Noncurrent assets as a percentage of total assets display an increasing trend, growing from 34.95% in 2018 to 57.12% in 2022. This shows a strategic shift towards long-term asset holdings. Property and equipment, net, showed minor fluctuation but remained around 3.4%, while the addition of operating lease right-of-use assets contributed to an increase in combined property, equipment, and right-of-use assets, which moved from 3.7% in 2018 to 5.18% by 2022.
Deferred income taxes decreased initially from 2.29% to 1.29% between 2018 and 2021, before sharply rising to 2.97% in 2022. Goodwill increased steadily over the period, peaking in 2021 at 20.34% before slightly decreasing to 19.42% in 2022, indicating acquisitions or valued intangible assets as a key component of noncurrent assets.
Other intangible assets expanded significantly, more than doubling from 3.99% in 2018 to 9.97% in 2022, which could reflect investments in intellectual property or technology.
Customer and merchant incentives under noncurrent assets also rose from 9.89% to 11.82%, signifying growing long-term obligations or deferred incentives.
Equity investments increased from 1.36% to 4.47%, indicating a broader investment strategy in associated entities. Income taxes receivable remained relatively stable, fluctuating slightly around 1.2% to 1.7%. Other assets increased from 13.29% to nearly 20%, showing diversification or accumulation of miscellaneous noncurrent assets.
Overall Asset Structure
The overall asset structure has shifted markedly, with a decline in short-term (current) asset proportions and an increase in long-term (noncurrent) asset proportions. This could indicate a strategic emphasis on long-term investments, acquisitions, and intangible asset growth. The total assets composition remains balanced at 100% for all periods.