Stock Analysis on Net

Mastercard Inc. (NYSE:MA)

Cash Flow Statement 

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Mastercard Inc., consolidated cash flow statement

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net income 8,687  6,411  8,118  5,859  3,915 
Amortization of customer and merchant incentives 1,371  1,072  1,141  1,235  1,001 
Depreciation and amortization 726  580  522  459  437 
(Gains) losses on equity investments, net (645) (30) (167) —  — 
Share-based compensation 273  254  250  196  176 
Deferred income taxes (69) 73  (7) (244) 86 
Venezuela charge —  —  —  —  167 
Other 36  14  24  31  59 
Accounts receivable (397) (86) (246) (317) (445)
Income taxes receivable (87) (2) (202) (120) — 
Settlement assets 390  1,288  (444) (1,078) (281)
Prepaid expenses (2,087) (1,552) (1,661) (1,769) (1,402)
Accrued litigation and legal settlements (1) (73) (662) 869  (15)
Restricted security deposits held for customers 177  326  290  (6) — 
Accounts payable 100  26  (42) 101  290 
Settlement obligations (568) (1,242) 477  849  394 
Accrued expenses 1,355  (114) 657  439  589 
Long-term taxes payable (52) (37) (20) 577 
Net change in other assets and liabilities 254  316  133  (261)
Changes in operating assets and liabilities (916) (1,150) (1,698) (1,313) (286)
Adjustments to reconcile net income to net cash provided by operating activities 776  813  65  364  1,640 
Net cash provided by operating activities 9,463  7,224  8,183  6,223  5,555 
Purchases of investment securities available-for-sale (389) (220) (643) (1,300) (714)
Purchases of investments held-to-maturity (294) (198) (215) (509) (1,145)
Proceeds from sales of investment securities available-for-sale 83  361  1,098  604  304 
Proceeds from maturities of investment securities available-for-sale 291  140  376  379  500 
Proceeds from maturities of investments held-to-maturity 296  121  383  929  1,020 
Purchases of property and equipment (407) (339) (422) (330) (300)
Capitalized software (407) (369) (306) (174) (123)
Purchases of equity investments (228) (214) (467) (91) (147)
Proceeds from sales of equity investments 186  —  —  —  — 
Acquisition of businesses, net of cash acquired (4,436) (989) (1,440) —  (1,175)
Settlement of interest rate derivative contracts —  (175) —  —  — 
Other investing activities 33  (4) (14)
Net cash used in investing activities (5,272) (1,879) (1,640) (506) (1,779)
Purchases of treasury stock (5,904) (4,473) (6,497) (4,933) (3,762)
Dividends paid (1,741) (1,605) (1,345) (1,044) (942)
Proceeds from debt, net 2,024  3,959  2,724  991  — 
Payment of debt (650) —  (500) —  (64)
Acquisition of redeemable non-controlling interests —  (49) —  —  — 
Acquisition of non-controlling interest (133) —  —  —  — 
Contingent consideration paid (64) —  (199) —  — 
Tax withholdings related to share-based payments (133) (150) (161) (80) (47)
Cash proceeds from exercise of stock options 61  97  126  104  57 
Other financing activities (15) 69  (15) (4) (6)
Net cash used in financing activities (6,555) (2,152) (5,867) (4,966) (4,764)
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents (153) 257  (44) (6) 200 
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents (2,517) 3,450  632  745  (788)
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period 12,419  8,969  8,337  7,592  6,721 
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period 9,902  12,419  8,969  8,337  5,933 

Based on: 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), 10-K (reporting date: 2017-12-31).

Cash flow statement item Description The company
Net cash provided by operating activities Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities. Mastercard Inc. net cash provided by operating activities decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Net cash used in investing activities Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets. Mastercard Inc. net cash used in investing activities decreased from 2019 to 2020 and from 2020 to 2021.
Net cash used in financing activities Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit. Mastercard Inc. net cash used in financing activities increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.