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: Liabilities and Stockholders’ Equity

Mastercard Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Accounts payable 2.39 1.96 1.57 1.67 2.16
Settlement obligations 2.87 2.42 4.39 9.28 8.81
Restricted security deposits held for customers 4.05 4.97 5.05 4.69 4.34
Accrued litigation 2.83 2.23 2.51 3.13 6.40
Customer and merchant incentives 14.46 12.56 11.90 13.31 13.17
Personnel costs 3.41 2.60 2.16 2.44 2.99
Income and other taxes 0.72 0.89 0.62 1.14 0.64
Other 1.55 1.58 1.48 1.89 2.29
Accrued expenses 20.15% 17.63% 16.17% 18.77% 19.09%
Short-term debt 0.71 2.10 1.93 0.00 2.01
Other current liabilities 3.61 3.62 3.66 3.17 3.82
Current liabilities 36.59% 34.94% 35.28% 40.72% 46.63%
Long-term debt, excluding current portion 35.51 34.80 35.80 29.17 23.47
Deferred income taxes 1.01 1.05 0.26 0.29 0.27
Other liabilities 10.42 9.53 9.26 9.33 7.55
Noncurrent liabilities 46.94% 45.38% 45.32% 38.79% 31.29%
Total liabilities 83.53% 80.32% 80.59% 79.51% 77.92%
Redeemable non-controlling interests 0.05 0.08 0.09 0.25 0.29
Class A common stock, $0.0001 par value 0.00 0.00 0.00 0.00 0.00
Class B common stock, $0.0001 par value 0.00 0.00 0.00 0.00 0.00
Additional paid-in-capital 13.68 13.44 14.83 16.37 18.42
Class A treasury stock, at cost -132.62 -113.06 -109.15 -110.16 -103.58
Retained earnings 138.43 121.18 115.37 116.24 109.75
Accumulated other comprehensive loss -3.24 -2.15 -2.02 -2.30 -2.89
Total Mastercard Incorporated stockholders’ equity 16.26% 19.41% 19.03% 20.16% 21.70%
Non-controlling interests 0.15 0.19 0.29 0.08 0.09
Total equity 16.41% 19.60% 19.32% 20.24% 21.79%
Total liabilities, redeemable non-controlling interests and equity 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).

The capital structure exhibits a progressive shift toward higher leverage and a transition from short-term obligations to long-term financing. Total liabilities as a percentage of total liabilities, redeemable non-controlling interests, and equity increased from 77.92% in 2018 to 83.53% in 2022.

Liability Composition and Trend
A migration from current to noncurrent liabilities is observed. Current liabilities declined from 46.63% in 2018 to 36.59% in 2022. During the same period, noncurrent liabilities rose from 31.29% to 46.94%. This shift is predominantly attributed to the increase in long-term debt, excluding the current portion, which expanded from 23.47% to 35.51%.
Current Liability Dynamics
Within current liabilities, settlement obligations showed a significant downward trend, falling from 8.81% in 2018 to 2.87% in 2022. Similarly, accrued litigation decreased from 6.40% to 2.83%. Customer and merchant incentives remained a substantial component of the balance sheet, ending the period at 14.46%, the highest level recorded since 2018.
Equity Structure and Shareholder Returns
Total equity declined as a percentage of the total capital structure, moving from 21.79% in 2018 to 16.41% in 2022. This contraction is not a result of decreased profitability, as retained earnings grew substantially from 109.75% to 138.43%. Instead, the decline in total equity is driven by a significant increase in treasury stock, which moved from -103.58% to -132.62%, indicating an aggressive program of share repurchases.
Other Balance Sheet Components
Redeemable non-controlling interests and non-controlling interests both trended downward, collectively representing a negligible portion of the total structure by 2022. Deferred income taxes remained relatively stable until 2021, when they increased from a historical range of approximately 0.26%–0.29% to 1.01% in 2022.

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