Name: Mastercard Inc. (NYSE:MA) | Income Statement
Creator: Stock Analysis on Net

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.

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Mastercard Inc., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net revenue	22,237)	18,884)	15,301)	16,883)	14,950)
General and administrative	(8,078)	(7,087)	(5,910)	(5,763)	(5,174)
Advertising and marketing	(789)	(895)	(657)	(934)	(907)
Depreciation and amortization	(750)	(726)	(580)	(522)	(459)
Provision for litigation	(356)	(94)	(73)	—)	(1,128)
Operating expenses	(9,973)	(8,802)	(7,220)	(7,219)	(7,668)
Operating income	12,264)	10,082)	8,081)	9,664)	7,282)
Investment income	61)	11)	24)	97)	122)
Gains (losses) on equity investments, net	(145)	645)	30)	167)	—)
Interest expense	(471)	(431)	(380)	(224)	(186)
Other income (expense), net	23)	—)	5)	27)	(14)
Other income (expense)	(532)	225)	(321)	67)	(78)
Income before income taxes	11,732)	10,307)	7,760)	9,731)	7,204)
Income tax expense	(1,802)	(1,620)	(1,349)	(1,613)	(1,345)
Net income	9,930)	8,687)	6,411)	8,118)	5,859)

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 financial performance between 2018 and 2022 is characterized by strong top-line growth and significant expansion in absolute profitability, despite a notable contraction in 2020. Net revenue increased from US$ 14,950 million in 2018 to US$ 22,237 million in 2022, demonstrating resilience and an ability to scale operations effectively after a temporary downturn.

Revenue and Growth Trends: Net revenue experienced a steady increase from 2018 to 2019, followed by a decrease to US$ 15,301 million in 2020. A robust recovery occurred in 2021 and 2022, with the latter year marking the highest revenue in the analyzed period. This trajectory indicates a strong post-pandemic recovery and sustained growth in the company's core revenue streams.
Operating Expense Analysis: Operating expenses grew from US$ 7,668 million in 2018 to US$ 9,973 million in 2022. The primary driver of this increase was General and Administrative expenses, which rose consistently each year, ending at US$ 8,078 million in 2022. In contrast, Advertising and Marketing expenses remained relatively stable, showing no linear growth trend. Provision for litigation remained volatile, with a peak of US$ 1,128 million in 2018 and fluctuating levels in subsequent years, including US$ 356 million in 2022.
Operating Income and Efficiency: Operating income exhibited a positive upward trend, rising from US$ 7,282 million in 2018 to US$ 12,264 million in 2022. The growth in operating income outpaced the growth in operating expenses, suggesting improved operational leverage and efficiency over the five-year period. The dip in 2020 to US$ 8,081 million was quickly reversed, with operating income exceeding 2019 levels by 2021.
Net Income and Tax Impact: Net income grew from US$ 5,859 million in 2018 to US$ 9,930 million in 2022. This growth was supported by consistent operating performance, although it was influenced by fluctuations in investment income and equity investment gains, particularly the gain of US$ 645 million in 2021. Income tax expenses scaled proportionally with pre-tax income, maintaining a relatively stable effective tax rate throughout the period.

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