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 Income Statement 

Mastercard Inc., common-size consolidated income statement

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12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net revenue 100.00 100.00 100.00 100.00 100.00
General and administrative -36.33 -37.53 -38.62 -34.13 -34.61
Advertising and marketing -3.55 -4.74 -4.29 -5.53 -6.07
Depreciation and amortization -3.37 -3.84 -3.79 -3.09 -3.07
Provision for litigation -1.60 -0.50 -0.48 0.00 -7.55
Operating expenses -44.85% -46.61% -47.19% -42.76% -51.29%
Operating income 55.15% 53.39% 52.81% 57.24% 48.71%
Investment income 0.27 0.06 0.16 0.57 0.82
Gains (losses) on equity investments, net -0.65 3.42 0.20 0.99 0.00
Interest expense -2.12 -2.28 -2.48 -1.33 -1.24
Other income (expense), net 0.10 0.00 0.03 0.16 -0.09
Other income (expense) -2.39% 1.19% -2.10% 0.40% -0.52%
Income before income taxes 52.76% 54.58% 50.72% 57.64% 48.19%
Income tax expense -8.10 -8.58 -8.82 -9.55 -9.00
Net income 44.66% 46.00% 41.90% 48.08% 39.19%

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).

General and Administrative Expenses
These expenses decreased as a percentage of net revenue from -34.61% in 2018 to a low of -34.13% in 2019, then rose to -38.62% in 2020 before gradually declining to -36.33% by 2022. This indicates some fluctuation with a peak in 2020 but overall a tendency towards lower relative expense after that year.
Advertising and Marketing Expenses
Advertising and marketing costs consistently decreased as a percentage of net revenue over the period, from -6.07% in 2018 to -3.55% in 2022. This steady decline suggests improved efficiency or a strategic reduction in advertising spend relative to revenue.
Depreciation and Amortization
This expense remained relatively stable, fluctuating slightly between -3.07% and -3.84% during the period, before decreasing to -3.37% in 2022. The overall moderate variation reflects consistent capital asset utilization.
Provision for Litigation
Provision for litigation showed significant variability with a peak of -7.55% in 2018, an absence of data for 2019, then much lower proportions around -0.48% to -0.5% in 2020 and 2021, before rising to -1.6% in 2022. This indicates fluctuating litigation-related costs impacting the income statement intermittently.
Operating Expenses
Operating expenses as a percentage of net revenue have moved from -51.29% in 2018 down to -42.76% in 2019, then increased to around -47.19% in 2020 with a gradual decline to -44.85% in 2022. This pattern reflects some inconsistency but generally points to controlled operating costs relative to revenue after 2019.
Operating Income
Operating income showed a rising trend from 48.71% in 2018 to a peak of 57.24% in 2019, followed by a decrease in 2020 to 52.81%, then gradually increased again to 55.15% in 2022. This indicates strong profitability management, despite some volatility.
Investment Income
Investment income declined steadily from 0.82% in 2018 to a low of 0.06% in 2021 but saw a modest increase to 0.27% in 2022, reflecting limited returns on investments relative to net revenue.
Gains (Losses) on Equity Investments, Net
This item was not reported in 2018, rose to 0.99% in 2019, declined sharply to 0.2% in 2020, then surged to 3.42% in 2021, before turning negative at -0.65% in 2022. This volatility may stem from fluctuating equity market conditions impacting gains and losses.
Interest Expense
Interest expense increased from -1.24% in 2018 to -2.48% in 2020, before declining steadily to -2.12% in 2022, indicating a peak borrowing cost in 2020 followed by some reduction.
Other Income (Expense), Net
This metric varied between small positive and negative figures without a clear trend, moving from -0.09% in 2018 to 0.1% in 2022, with intermittent fluctuations indicating minor non-operating items affecting income.
Other Income (Expense)
Reported values show considerable volatility, from -0.52% in 2018 to 0.4% in 2019, flipping to negative at -2.1% in 2020, positive 1.19% in 2021, and back to negative -2.39% in 2022, underscoring irregular impacts from miscellaneous income or expenses.
Income Before Income Taxes
Income before income taxes increased from 48.19% in 2018 to 57.64% in 2019, decreased to 50.72% in 2020, then rose again to 54.58% in 2021 before slightly declining to 52.76% in 2022, mirroring trends in operating income and investment results.
Income Tax Expense
Income tax expense as a percentage of net revenue remained relatively consistent, fluctuating narrowly between -9.55% in 2019 and -8.1% in 2022, suggesting a stable effective tax rate over time.
Net Income
Net income as a percentage of net revenue increased markedly from 39.19% in 2018 to 48.08% in 2019, then declined to 41.9% in 2020 before climbing again to 46% in 2021 and slightly decreasing to 44.66% in 2022. This reflects strong profitability with some impact from the variances in operating results and one-time items.