Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
Mastercard Inc., consolidated income statement
US$ in millions
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 analyzed financial data reveal several notable trends and fluctuations over the five-year period.
- Net revenue
- There is a generally upward trend in net revenue, increasing from 14,950 million US$ in 2018 to 22,237 million US$ in 2022, despite a dip in 2020. The company experienced a peak in 2022 indicating sustained revenue growth.
- Operating expenses
- Operating expenses increased overall, rising from 7,668 million US$ in 2018 to 9,973 million US$ in 2022, with some year-to-year fluctuations. This increase was driven primarily by growth in general and administrative expenses which rose significantly by approximately 56% over the period.
- Advertising and marketing
- Advertising and marketing expenses displayed some volatility, peaking initially in 2019 at 934 million US$ but generally remaining below 1,000 million US$ with a slight decrease towards 789 million US$ in 2022. A notable reduction occurred in 2020, possibly related to external factors impacting marketing strategies.
- Depreciation and amortization
- Depreciation and amortization expenses showed a steady increase from 459 million US$ in 2018 to 750 million US$ in 2022, reflecting growing asset base or capital expenditures over time.
- Provision for litigation
- There is inconsistency in the provision for litigation figures, including missing data in 2019. The amount decreased markedly in 2020 and 2021 but rose significantly to 356 million US$ in 2022, indicating potential legal or regulatory developments impacting costs.
- Operating income
- Operating income increased from 7,282 million US$ in 2018 to 12,264 million US$ in 2022, with a decline observed in 2020. The rise corresponds with the revenue trend, reflecting overall profitability improvement despite variable expenses.
- Investment income and gains/losses on equity investments
- Investment income declined steeply from 122 million US$ in 2018 to lower values in subsequent years, reaching a minimum of 11 million US$ in 2021 before a slight rebound. Gains (losses) on equity investments showed high volatility, with a major gain in 2021 at 645 million US$ but a net loss of 145 million US$ in 2022, indicating uncertain investment performance.
- Interest expense
- Interest expense increased steadily from 186 million US$ in 2018 to 471 million US$ in 2022, which may reflect higher debt levels or increased borrowing costs over the years.
- Other income (expense), net
- This category presented fluctuating figures, including both income and expenses without a clear pattern. The net figures were generally small, indicating minor impact on overall profitability.
- Income before income taxes
- There was a rising trend in income before income taxes from 7,204 million US$ in 2018 to 11,732 million US$ in 2022, despite a decline in 2020. This aligns with the increases in operating income and overall profitability.
- Income tax expense
- Income tax expense increased steadily over the period from 1,345 million US$ to 1,802 million US$, consistent with the rise in pre-tax income.
- Net income
- Net income followed an upward trend, growing from 5,859 million US$ in 2018 to 9,930 million US$ in 2022. A noticeable dip occurred in 2020, mirroring the impact on revenues and operating income during that year, followed by a recovery to the highest level in the final year.