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 analysis of the financial data over the examined period reveals several notable trends related to liquidity and short-term financial health.
- Current Assets
- There is a general upward trend in current assets from 2006 through 2020, increasing from 3,577 million US dollars to a peak of 19,113 million US dollars. This growth reflects a steady accumulation of resources that are expected to be converted to cash or used within the year. However, after 2020, current assets declined, falling to 16,949 million in 2021 and further to 16,606 million in 2022, suggesting a reduction or reallocation of short-term assets in recent years.
- Current Liabilities
- Current liabilities also demonstrate an upward trajectory throughout the period, rising consistently from 1,812 million US dollars in 2006 to 14,171 million US dollars by 2022. This indicates an increasing level of short-term obligations that the company must settle within a year. The rise in current liabilities appears to be relatively steady and consistent with the growth in operations or financing activities.
- Current Ratio
- The current ratio, which measures liquidity by comparing current assets to current liabilities, shows a fluctuating but overall declining trend after an initial period of relative stability. The ratio starts at 1.97 in 2006 and remains near that level through 2007 (1.94), then declines sharply to 1.44 in 2008. It recovers somewhat over the next few years, reaching around 2.05 in 2010, which indicates strong short-term liquidity at that time. However, from 2011 onward, the ratio generally declines with some minor fluctuations, falling to 1.17 by 2022. This downward trend suggests that the growth in current liabilities has outpaced increases in current assets, potentially indicating a deterioration in the company's ability to cover short-term obligations with its current assets.
In summary, while the company showed steady growth in both current assets and current liabilities over the long term, the declining current ratio in recent years flags a potential tightening of liquidity. The decrease in current assets after 2020 alongside continuously rising current liabilities may warrant attention to ensure that short-term financial stability is maintained.
Comparison to Competitors
Mastercard Inc., current ratio, long-term trends, comparison to competitors
| Mastercard Inc. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Fair Isaac Corp. | 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 | 1.27 | 1.83 | 1.46 | 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 | 1.77 | 2.65 | 0.99 | 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 | 2.38 | 1.29 | 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 | — | 0.93 | 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 | — | 0.80 | 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 | — | 0.95 | 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 | — | 1.09 | 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 | — | 1.18 | 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 | — | 0.85 | 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 | — | 1.50 | 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 | — | 1.24 | 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 | — | 2.49 | 1.21 | 1.25 | 2.60 | 2.76 | — | — | 0.84 | — | 1.33 | — |
| Dec 31, 2010 | 2.05 | 1.46 | 3.01 | 1.26 | — | 2.84 | 1.19 | 1.88 | 2.13 | 1.84 | — | — | 1.88 | — | 1.35 | — |
| Dec 31, 2009 | 1.58 | 1.46 | 2.93 | 2.14 | — | 3.86 | 1.36 | 1.82 | 1.82 | 2.03 | — | — | 1.39 | — | 1.80 | — |
| Dec 31, 2008 | 1.44 | 1.34 | 3.59 | 1.69 | — | 2.87 | 1.15 | 1.21 | 1.45 | 1.81 | — | — | 1.22 | — | 1.45 | — |
| Dec 31, 2007 | 1.94 | 1.14 | 3.02 | 1.95 | — | 0.80 | 1.20 | 1.68 | 1.69 | 1.37 | — | — | 1.11 | — | 1.29 | — |
| Dec 31, 2006 | 1.97 | 1.26 | 4.26 | 2.39 | — | 0.77 | 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 | 1.67 |
| Dec 31, 2020 | 1.61 | 1.91 |
| Dec 31, 2019 | 1.42 | 1.84 |
| Dec 31, 2018 | 1.39 | 2.22 |
| 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 | 1.62 |
| Dec 31, 2009 | 1.58 | 1.63 |
| Dec 31, 2008 | 1.44 | 1.36 |
| Dec 31, 2007 | 1.94 | 1.37 |
| Dec 31, 2006 | 1.97 | 1.52 |
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 | 2.03 |
| Dec 31, 2014 | 1.77 | 1.97 |
| Dec 31, 2013 | 1.82 | 2.20 |
| Dec 31, 2012 | 1.91 | 2.07 |
| Dec 31, 2011 | 1.84 | 2.11 |
| Dec 31, 2010 | 2.05 | 2.01 |
| Dec 31, 2009 | 1.58 | 2.03 |
| Dec 31, 2008 | 1.44 | 1.80 |
| Dec 31, 2007 | 1.94 | 1.78 |
| Dec 31, 2006 | 1.97 | 1.85 |
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).