Name: Mastercard Inc. (NYSE:MA) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Accounts payable	926)	738)	527)	489)	537)
Settlement obligations	1,111)	913)	1,475)	2,714)	2,189)
Restricted security deposits held for customers	1,568)	1,873)	1,696)	1,370)	1,080)
Accrued litigation	1,094)	840)	842)	914)	1,591)
Customer and merchant incentives	5,600)	4,730)	3,998)	3,892)	3,275)
Personnel costs	1,322)	980)	727)	713)	744)
Income and other taxes	279)	337)	208)	332)	158)
Other	600)	595)	497)	552)	570)
Accrued expenses	7,801)	6,642)	5,430)	5,489)	4,747)
Short-term debt	274)	792)	649)	—)	500)
Other current liabilities	1,397)	1,364)	1,228)	928)	949)
Current liabilities	14,171)	13,162)	11,847)	11,904)	11,593)
Long-term debt, excluding current portion	13,749)	13,109)	12,023)	8,527)	5,834)
Deferred income taxes	393)	395)	86)	85)	67)
Other liabilities	4,034)	3,591)	3,111)	2,729)	1,877)
Noncurrent liabilities	18,176)	17,095)	15,220)	11,341)	7,778)
Total liabilities	32,347)	30,257)	27,067)	23,245)	19,371)
Redeemable non-controlling interests	21)	29)	29)	74)	71)
Class A common stock, $0.0001 par value	—)	—)	—)	—)	—)
Class B common stock, $0.0001 par value	—)	—)	—)	—)	—)
Additional paid-in-capital	5,298)	5,061)	4,982)	4,787)	4,580)
Class A treasury stock, at cost	(51,354)	(42,588)	(36,658)	(32,205)	(25,750)
Retained earnings	53,607)	45,648)	38,747)	33,984)	27,283)
Accumulated other comprehensive loss	(1,253)	(809)	(680)	(673)	(718)
Total Mastercard Incorporated stockholders’ equity	6,298)	7,312)	6,391)	5,893)	5,395)
Non-controlling interests	58)	71)	97)	24)	23)
Total equity	6,356)	7,383)	6,488)	5,917)	5,418)
Total liabilities, redeemable non-controlling interests and equity	38,724)	37,669)	33,584)	29,236)	24,860)

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).

Total liabilities experienced a consistent upward trajectory from 2018 to 2022, increasing from US$ 19,371 million to US$ 32,347 million. This growth was primarily driven by a significant expansion in noncurrent liabilities, which more than doubled from US$ 7,778 million to US$ 18,176 million over the five-year period.

Debt Profile and Long-Term Obligations: Long-term debt, excluding the current portion, showed substantial growth, rising from US$ 5,834 million in 2018 to US$ 13,749 million in 2022. This indicates a strategic shift toward increasing long-term leverage. In contrast, short-term debt remained relatively low and volatile, peaking at US$ 792 million in 2021 before declining to US$ 274 million in 2022.
Operational Liabilities and Accruals: Current liabilities grew moderately from US$ 11,593 million to US$ 14,171 million. Within this category, customer and merchant incentives exhibited a steady increase, rising from US$ 3,275 million to US$ 5,600 million, reflecting growth in the company's incentive programs. Accrued expenses also climbed steadily, moving from US$ 4,747 million in 2018 to US$ 7,801 million in 2022.
Equity Composition and Share Repurchases: Total equity remained relatively stable, ending 2022 at US$ 6,356 million compared to US$ 5,418 million in 2018. A notable divergence is observed between retained earnings and treasury stock; retained earnings grew strongly from US$ 27,283 million to US$ 53,607 million, while treasury stock increased significantly from US$ -25,750 million to US$ -51,354 million. This suggests that the accumulation of profits was largely offset by an aggressive share repurchase program.
Other Financial Indicators: Accrued litigation showed a downward trend from 2018 (US$ 1,591 million) to 2021 (US$ 840 million) before rising again to US$ 1,094 million in 2022. Additionally, accumulated other comprehensive loss widened from US$ -718 million in 2018 to US$ -1,253 million in 2022.

The overall financial position indicates a leveraged capital structure where the growth in total liabilities has outpaced the growth in stockholders' equity. The expansion of the balance sheet is characterized by increased long-term borrowing and substantial returns to shareholders through buybacks, which have tempered the impact of strong retained earnings growth on the total equity base.

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