Current Ratio
since 2006
Calculation
Mastercard Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 1.17 | = | 16,606) | ÷ | 14,171) |
| Dec 31, 2021 | 1.29 | = | 16,949) | ÷ | 13,162) |
| Dec 31, 2020 | 1.61 | = | 19,113) | ÷ | 11,847) |
| Dec 31, 2019 | 1.42 | = | 16,902) | ÷ | 11,904) |
| Dec 31, 2018 | 1.39 | = | 16,171) | ÷ | 11,593) |
| Dec 31, 2017 | 1.57 | = | 13,797) | ÷ | 8,793) |
| Dec 31, 2016 | 1.84 | = | 13,228) | ÷ | 7,206) |
| Dec 31, 2015 | 1.75 | = | 10,985) | ÷ | 6,269) |
| Dec 31, 2014 | 1.77 | = | 10,997) | ÷ | 6,222) |
| Dec 31, 2013 | 1.82 | = | 10,950) | ÷ | 6,032) |
| Dec 31, 2012 | 1.91 | = | 9,357) | ÷ | 4,906) |
| Dec 31, 2011 | 1.84 | = | 7,741) | ÷ | 4,217) |
| Dec 31, 2010 | 2.05 | = | 6,454) | ÷ | 3,143) |
| Dec 31, 2009 | 1.58 | = | 5,003) | ÷ | 3,167) |
| Dec 31, 2008 | 1.44 | = | 4,312) | ÷ | 2,990) |
| Dec 31, 2007 | 1.94 | = | 4,592) | ÷ | 2,363) |
| Dec 31, 2006 | 1.97 | = | 3,577) | ÷ | 1,812) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31).
1 US$ in millions
The liquidity position of the organization demonstrates a long-term trend of expansion in both current assets and current liabilities, accompanied by a gradual tightening of the current ratio over the last several years.
- Asset and Liability Growth
- Current assets exhibited consistent growth from 2006 through 2020, rising from 3,577 million USD to a peak of 19,113 million USD. Following this peak, a moderate decline occurred, with assets settling at 16,606 million USD by the end of 2022. Concurrently, current liabilities increased steadily from 1,812 million USD in 2006 to 14,171 million USD in 2022, indicating a significant expansion in short-term obligations over the 16-year period.
- Current Ratio Volatility and Trends
- The current ratio remained relatively robust between 2006 and 2016, generally fluctuating between 1.44 and 2.05. A notable peak was observed in 2010 at 2.05, indicating a strong coverage of short-term liabilities. However, a persistent downward trajectory began after 2016, with the ratio decreasing from 1.84 to 1.17 by 2022. This decline suggests a reduction in the margin of safety regarding short-term liquidity.
- Liquidity Compression
- The most significant compression in liquidity occurred between 2017 and 2022. During this window, the current ratio dropped from 1.57 to 1.17. This trend is primarily driven by the fact that current liabilities grew more aggressively in the latter years—specifically jumping from 8,793 million USD in 2017 to 14,171 million USD in 2022—while current assets experienced a slight contraction in the final two years of the analyzed period.
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Comparison to Competitors
Mastercard Inc., current ratio, long-term trends, comparison to competitors
| Mastercard Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 1.17 | 1.23 | 1.11 | 3.35 | 1.27 | 3.09 | 0.92 | 1.39 | 1.78 | 1.62 | 5.17 | 0.77 | 1.05 | 1.11 | 1.09 | 1.03 |
| Dec 31, 2021 | 1.29 | 1.25 | 1.25 | 5.05 | 1.77 | 3.54 | 0.88 | 1.94 | 2.08 | 2.30 | 4.34 | 0.91 | 1.23 | 1.05 | 1.16 | 1.12 |
| Dec 31, 2020 | 1.61 | 1.40 | 1.48 | — | 1.86 | 5.77 | 0.98 | 2.26 | 2.52 | 3.03 | 3.74 | 1.91 | 1.08 | 1.21 | 1.19 | 1.04 |
| Dec 31, 2019 | 1.42 | 1.40 | 0.79 | — | 1.74 | 4.51 | 1.02 | 1.83 | 2.53 | 2.49 | — | 1.78 | 0.95 | 1.03 | 0.99 | 1.11 |
| Dec 31, 2018 | 1.39 | 1.34 | 1.13 | — | 1.34 | — | 1.29 | 1.14 | 2.90 | 3.96 | — | 1.93 | 0.92 | 1.17 | 0.73 | 1.92 |
| Dec 31, 2017 | 1.57 | 1.23 | 2.05 | — | 1.53 | — | 1.33 | 0.73 | 2.48 | 3.08 | — | 1.65 | 0.83 | 1.15 | 1.04 | 1.93 |
| Dec 31, 2016 | 1.84 | 1.35 | 2.08 | — | 1.20 | — | 1.21 | 0.72 | 2.35 | 3.74 | — | 2.03 | 0.77 | 1.25 | 1.00 | 2.56 |
| Dec 31, 2015 | 1.75 | 1.36 | 2.18 | — | 1.80 | — | 1.24 | 1.47 | 2.50 | 4.13 | — | 1.04 | 0.81 | 1.48 | 0.99 | 3.29 |
| Dec 31, 2014 | 1.77 | 1.46 | 1.85 | — | 1.33 | — | 1.25 | 1.84 | 2.50 | 3.35 | — | 2.75 | 0.67 | 1.79 | 1.09 | 4.80 |
| Dec 31, 2013 | 1.82 | 1.45 | 2.65 | — | 1.06 | — | 1.28 | 1.87 | 2.71 | 3.24 | — | 2.57 | 0.69 | 2.43 | 1.18 | 3.47 |
| Dec 31, 2012 | 1.91 | 1.55 | 3.41 | — | 1.14 | — | 1.13 | 1.20 | 2.60 | 2.60 | — | 3.13 | 0.72 | 1.99 | 0.91 | — |
| Dec 31, 2011 | 1.84 | 1.45 | 3.02 | — | 1.05 | — | 1.21 | 1.25 | 2.60 | 2.76 | — | — | 0.84 | — | 1.33 | — |
| Dec 31, 2010 | 2.05 | 1.46 | 3.01 | — | 1.26 | — | 1.19 | 1.88 | 2.13 | 1.84 | — | — | 1.88 | — | 1.35 | — |
| Dec 31, 2009 | 1.58 | 1.46 | 2.93 | — | 2.14 | — | 1.36 | 1.82 | 1.82 | 2.03 | — | — | 1.39 | — | 1.80 | — |
| Dec 31, 2008 | 1.44 | 1.34 | 3.59 | — | 1.69 | — | 1.15 | 1.21 | 1.45 | 1.81 | — | — | 1.22 | — | 1.45 | — |
| Dec 31, 2007 | 1.94 | 1.14 | 3.02 | — | 1.95 | — | 1.20 | 1.68 | 1.69 | 1.37 | — | — | 1.11 | — | 1.29 | — |
| Dec 31, 2006 | 1.97 | 1.26 | 4.26 | — | 2.39 | — | 1.11 | 1.79 | 2.18 | 1.73 | — | — | 1.29 | — | 1.03 | — |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31).
Comparison to Sector (Software & Services)
Mastercard Inc., current ratio, long-term trends, comparison to sector (software & services)
| Mastercard Inc. | Software & Services | |
|---|---|---|
| Dec 31, 2022 | 1.17 | 1.43 |
| Dec 31, 2021 | 1.29 | 1.68 |
| Dec 31, 2020 | 1.61 | 1.92 |
| Dec 31, 2019 | 1.42 | 1.84 |
| Dec 31, 2018 | 1.39 | 2.23 |
| Dec 31, 2017 | 1.57 | 2.06 |
| Dec 31, 2016 | 1.84 | 2.03 |
| Dec 31, 2015 | 1.75 | 2.15 |
| Dec 31, 2014 | 1.77 | 2.01 |
| Dec 31, 2013 | 1.82 | 2.04 |
| Dec 31, 2012 | 1.91 | 1.84 |
| Dec 31, 2011 | 1.84 | 1.87 |
| Dec 31, 2010 | 2.05 | 1.61 |
| Dec 31, 2009 | 1.58 | 1.62 |
| Dec 31, 2008 | 1.44 | 1.36 |
| Dec 31, 2007 | 1.94 | 1.38 |
| Dec 31, 2006 | 1.97 | 1.53 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31).
Comparison to Industry (Information Technology)
Mastercard Inc., current ratio, long-term trends, comparison to industry (information technology)
| Mastercard Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2022 | 1.17 | 1.37 |
| Dec 31, 2021 | 1.29 | 1.55 |
| Dec 31, 2020 | 1.61 | 1.71 |
| Dec 31, 2019 | 1.42 | 1.66 |
| Dec 31, 2018 | 1.39 | 1.88 |
| Dec 31, 2017 | 1.57 | 2.04 |
| Dec 31, 2016 | 1.84 | 2.01 |
| Dec 31, 2015 | 1.75 | 2.04 |
| Dec 31, 2014 | 1.77 | 1.98 |
| Dec 31, 2013 | 1.82 | 2.20 |
| Dec 31, 2012 | 1.91 | 2.08 |
| Dec 31, 2011 | 1.84 | 2.12 |
| Dec 31, 2010 | 2.05 | 2.02 |
| Dec 31, 2009 | 1.58 | 2.04 |
| Dec 31, 2008 | 1.44 | 1.80 |
| Dec 31, 2007 | 1.94 | 1.79 |
| Dec 31, 2006 | 1.97 | 1.86 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31).