Mastercard Inc. (NYSE:MA)

The analysis of the annual financial data reveals a consistent upward trend in both total assets and adjusted total assets over the five-year period presented.

Total Assets

Total assets exhibited steady growth from US$24,860 million at the end of 2018 to US$38,724 million by the end of 2022. This represents a cumulative increase of approximately 56% over the five years, indicative of asset expansion and potential business growth or acquisition activities.

Adjusted Total Assets

Adjusted total assets followed a similar pattern, rising from US$24,872 million in 2018 to US$37,573 million in 2022. The growth in adjusted total assets is closely aligned with the growth in total assets, showing a comparable percentage increase and suggesting that any adjustments applied did not significantly alter the overall asset base trends.

Comparison and Insights

The marginal differences between total assets and adjusted total assets imply that adjustments to asset valuations or accounting treatments have been minimal over the period. Both measures show resilience and continuous asset accumulation, which could signal sound asset management and potential reinvestment strategies within the company.

Overall Trend

The consistent yearly increase without any significant decline or stagnation indicates a positive trajectory in the asset base. This growth trend may support further analysis on the company's operational scale, investment activities, and financial stability over the examined periods.

Current liabilities

The current liabilities of the company show a consistent upward trend over the five-year period from 2018 to 2022. Beginning at approximately 11,593 million USD in 2018, the liabilities increased steadily each year, reaching 11,904 million in 2019, slightly decreasing to 11,847 million in 2020, before rising again to 13,162 million in 2021 and further increasing to 14,171 million in 2022. This overall growth suggests increased short-term obligations over time.

Adjusted current liabilities

Adjusted current liabilities follow a similar pattern to the reported current liabilities, with values slightly lower in each period. Starting at 11,375 million USD in 2018, they rose to 11,666 million in 2019, then decreased to 11,492 million in 2020. Following that, there is a notable increase to 12,680 million in 2021 and 13,737 million in 2022. The adjustment seems to represent a moderate reduction relative to reported figures but does not alter the overall increasing trend observed.

Total liabilities

Total liabilities exhibited a consistent upward trend over the five-year period from 2018 to 2022. Starting at 19,371 million US dollars in 2018, the liabilities increased annually, reaching 23,245 million in 2019 and 27,067 million in 2020. This upward movement continued with liabilities growing to 30,257 million in 2021 and culminating at 32,347 million in 2022. Overall, total liabilities increased by approximately 67% over the period, indicating a substantial expansion in the company's total obligations.

Adjusted total liabilities

Adjusted total liabilities also demonstrated a similar ascending trend from 2018 through 2022. Initially reported at 19,567 million US dollars in 2018, the adjusted liabilities slightly decreased to 22,816 million in 2019 but then resumed growth with 26,483 million recorded in 2020. The upward trajectory continued with increases to 29,200 million in 2021 and 31,272 million in 2022. Although the adjusted figures were consistently close to the total liabilities, they were slightly higher in 2018 but slightly lower in subsequent years, suggesting adjustments may account for certain liabilities differently over time.

Comparative insights

Both total and adjusted total liabilities followed a steady and sizeable increase across the five years, reflecting an expansion in the company’s financial commitments. The parallel growth patterns indicate that adjustments applied to liabilities did not substantially alter the overall upward trend. This steady increase may point to strategic decisions involving greater leveraging or increased operational scale, necessitating higher liabilities.

Total Mastercard Incorporated stockholders’ equity

The total stockholders’ equity demonstrated a generally increasing trend from 2018 through 2021, rising from 5,395 million USD in 2018 to a peak of 7,312 million USD in 2021. However, in 2022, there was a noticeable decline to 6,298 million USD, indicating a contraction after several years of growth.

Adjusted total equity

The adjusted total equity followed a similar upward trajectory from 2018 to 2021, increasing from 5,305 million USD to 7,983 million USD. This measure peaked more significantly in 2021 compared to the unadjusted total equity. Yet, similar to the total stockholders' equity, the adjusted total equity fell in 2022 to 6,301 million USD, aligning closely with the decline observed in total stockholders’ equity for that year.

Overall Analysis

The data suggests a strong growth period in both equity measures through the four-year span ending in 2021, reflecting potentially favorable operational and financial conditions. The decline in equity values in 2022 could indicate challenges or adjustments sustained by the company during that year. The close correlation between the adjusted and unadjusted equity figures suggests consistent accounting approaches or similar influencing factors on both measures over the timeline analyzed.

Total Reported Debt

The total reported debt shows a consistent upward trend from 2018 to 2022. It increased from 6,334 million USD in 2018 to 14,023 million USD in 2022, more than doubling over the five-year period. The most significant annual increases occurred between 2018 to 2020, followed by a more moderate rise in the subsequent years.

Total Reported Stockholders’ Equity

Stockholders’ equity generally increased from 2018 to 2021, rising from 5,395 million USD to 7,312 million USD. However, in 2022, equity decreased to 6,298 million USD, interrupting the previous growth trend.

Total Reported Capital

Total reported capital, calculated as the sum of debt and equity, rose steadily from 11,729 million USD in 2018 to a peak of 21,213 million USD in 2021, before declining slightly to 20,321 million USD in 2022. This decline in 2022 aligns with the reduction in stockholders' equity.

Adjusted Total Debt

The adjusted total debt shows a similar upward trajectory to reported debt, increasing consistently from 6,916 million USD in 2018 to 14,793 million USD in 2022. This category confirms the rising leverage position over the period analyzed with the largest increments between 2018 and 2020.

Adjusted Total Equity

Adjusted total equity follows a comparable pattern to reported stockholders’ equity, increasing steadily from 5,305 million USD in 2018 to 7,983 million USD in 2021, then decreasing sharply to 6,301 million USD in 2022. The downward shift in 2022 may indicate changes in retained earnings or other equity adjustments.

Adjusted Total Capital

Adjusted total capital reflects the combined movement of adjusted debt and adjusted equity. It grew from 12,221 million USD in 2018 to a peak of 22,656 million USD in 2021, and subsequently declined to 21,094 million USD in 2022. The decline is consistent with that observed in adjusted equity during the last year.

Revenue Trends

Over the observed five-year period, both net revenue and adjusted net revenue demonstrate a general upward trend. Net revenue increased from 14,950 million US dollars at the end of 2018 to 22,237 million US dollars by the end of 2022. This represents a cumulative growth reflecting a strengthening business performance.

Adjusted net revenue follows a similar pattern, starting at 15,022 million US dollars in 2018 and rising to 22,257 million by 2022. The adjustment does not significantly alter the overall trend but suggests minor reconciliation or non-recurring items incorporated in the adjusted figures.

Year-over-Year Changes

The growth from 2018 to 2019 saw net revenue increase by approximately 13% (from 14,950 to 16,883 million US dollars), indicating a solid year of expansion. However, in 2020, there was a decline in both net and adjusted revenue—reflecting a possible impact from external factors, as revenue decreased to approximately 15,301 and 15,455 million US dollars respectively.

A strong recovery is observed in 2021, with net revenue rebounding to 18,884 million US dollars, marking a 23% increase from 2020. Adjusted net revenue rose similarly to 19,048 million US dollars, underscoring renewed momentum.

The upward trajectory continued in 2022, with revenues reaching their highest in the dataset: net revenue at 22,237 million and adjusted net revenue at 22,257 million US dollars. This suggests consistent growth and possibly improvements in operational efficiency or market conditions.

Comparative Analysis Between Net and Adjusted Revenues

The net revenue and adjusted net revenue figures are closely aligned across all periods, with adjusted revenue typically slightly higher, indicating minor adjustments that do not substantially depart from core revenue figures. The consistency between these two metrics reflects stability and reliability in revenue reporting.

Net Income Trends

Net income experienced a general upward trend over the five-year period. Starting at 5,859 million US dollars in 2018, it increased significantly to 8,118 million in 2019, representing substantial growth. However, in 2020, there was a notable decline to 6,411 million, suggesting potential impacts from external factors during that year. Following this dip, net income rebounded strongly in 2021, reaching 8,687 million, and continued to rise in 2022 to 9,930 million, marking the highest point within the period.

Adjusted Net Income Trends

Adjusted net income followed a somewhat similar trajectory, starting at 5,466 million in 2018. It increased sharply to 8,181 million in 2019, aligning closely with the net income pattern. There was a decline in 2020 to 6,631 million, mirroring the dip in net income during the same year but with a slightly less pronounced drop. Adjusted net income recovered in 2021 to 8,652 million and then showed a slight decrease to 8,855 million in 2022, indicating a stabilization after the previous volatility.

Comparative Observations

Both net income and adjusted net income demonstrate high volatility, particularly around 2020, which could be associated with challenging economic conditions or significant company-specific events. The recovery post-2020 signals resilience and effective management. Although adjusted net income slightly lags behind net income in 2022, both metrics remain elevated compared to earlier years, indicating overall business growth and profitability improvement throughout the period analyzed.