Debt to Equity
since 2006
Calculation
Mastercard Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Long-term debt, including current portion1 | ÷ | Total Mastercard Incorporated stockholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 2.23 | = | 14,023) | ÷ | 6,298) |
| Dec 31, 2021 | 1.90 | = | 13,901) | ÷ | 7,312) |
| Dec 31, 2020 | 1.98 | = | 12,672) | ÷ | 6,391) |
| Dec 31, 2019 | 1.45 | = | 8,527) | ÷ | 5,893) |
| Dec 31, 2018 | 1.17 | = | 6,334) | ÷ | 5,395) |
| Dec 31, 2017 | 0.99 | = | 5,424) | ÷ | 5,468) |
| Dec 31, 2016 | 0.92 | = | 5,180) | ÷ | 5,656) |
| Dec 31, 2015 | 0.55 | = | 3,287) | ÷ | 6,028) |
| Dec 31, 2014 | 0.22 | = | 1,494) | ÷ | 6,790) |
| Dec 31, 2013 | 0.00 | = | —) | ÷ | 7,484) |
| Dec 31, 2012 | 0.00 | = | —) | ÷ | 6,917) |
| Dec 31, 2011 | 0.00 | = | —) | ÷ | 5,868) |
| Dec 31, 2010 | 0.00 | = | —) | ÷ | 5,205) |
| Dec 31, 2009 | 0.01 | = | 22) | ÷ | 3,504) |
| Dec 31, 2008 | 0.09 | = | 169) | ÷ | 1,927) |
| Dec 31, 2007 | 0.08 | = | 230) | ÷ | 3,027) |
| Dec 31, 2006 | 0.10 | = | 230) | ÷ | 2,364) |
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 financial trajectory from 2006 to 2022 reveals a fundamental shift in capital structure, transitioning from a conservative, low-leverage position to a more aggressive utilization of long-term debt.
- Long-term Debt Accumulation
- Between 2006 and 2009, long-term debt remained minimal, reaching a low of 22 million US dollars in 2009. However, starting in 2014, a significant acceleration in borrowing is observed. Debt levels rose from 1.49 billion US dollars in 2014 to 14.02 billion US dollars by 2022, reflecting a substantial and consistent increase in total liabilities over an eight-year period.
- Stockholders' Equity Trends
- Total stockholders' equity exhibited a general growth pattern from 2006 to 2013, peaking at 7.48 billion US dollars. Following this peak, equity entered a period of contraction and volatility, declining to 5.40 billion US dollars by 2018. While equity recovered slightly to 6.30 billion US dollars by 2022, the growth in equity remained stagnant relative to the exponential increase in debt.
- Debt to Equity Ratio Analysis
- The debt to equity ratio was negligible during the initial period, reaching a minimum of 0.01 in 2009. A sharp upward trend began in 2014, with the ratio climbing from 0.22 to 2.23 by 2022. A critical inflection point occurred in 2018 when the ratio surpassed 1.0, signifying that long-term debt had exceeded total stockholders' equity. The progression to 2.23 indicates a significant increase in financial leverage and a shift in the company's approach to financing its operations and growth.
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Comparison to Competitors
Mastercard Inc., debt to equity, 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 | 2.23 | 0.00 | 0.29 | 1.69 | 0.27 | 0.52 | 2.32 | 0.42 | 0.39 | — | 0.00 | 17.51 | 0.19 | 0.30 | 0.00 | 0.41 |
| Dec 31, 2021 | 1.90 | 0.00 | 0.28 | 1.51 | 0.13 | 0.71 | 2.74 | 0.21 | 0.50 | 16.08 | 0.00 | 5.08 | 0.07 | 0.43 | 0.02 | 0.55 |
| Dec 31, 2020 | 1.98 | 0.00 | 0.31 | — | 0.14 | 0.60 | 2.99 | 0.66 | 0.62 | 5.93 | 0.13 | 2.80 | 0.09 | 0.58 | 0.03 | 0.51 |
| Dec 31, 2019 | 1.45 | 0.00 | 0.39 | — | 0.16 | 0.00 | 3.02 | 0.12 | 0.77 | 2.58 | — | 0.90 | 0.22 | 0.33 | 0.03 | 0.62 |
| Dec 31, 2018 | 1.17 | 0.00 | 0.44 | — | 0.35 | — | 2.73 | 0.19 | 0.97 | 1.33 | — | 1.99 | 0.21 | 0.60 | 0.13 | 0.94 |
| Dec 31, 2017 | 0.99 | 0.00 | 0.22 | — | 0.74 | — | 2.66 | 0.36 | 1.23 | 1.08 | — | 0.69 | 0.32 | 2.01 | 0.04 | 0.46 |
| Dec 31, 2016 | 0.92 | 0.00 | 0.26 | — | 0.93 | — | 2.31 | 0.86 | 0.76 | 0.93 | — | 0.64 | 0.36 | 1.31 | 0.06 | 0.45 |
| Dec 31, 2015 | 0.55 | 0.00 | 0.27 | — | 0.25 | — | 2.80 | 0.21 | 0.44 | 0.86 | — | 1.00 | 0.49 | 0.84 | 0.07 | 0.44 |
| Dec 31, 2014 | 0.22 | 0.00 | 0.22 | — | 0.52 | — | 3.44 | 0.16 | 0.25 | 0.52 | — | 1.00 | 0.79 | 1.04 | 0.02 | 0.41 |
| Dec 31, 2013 | 0.00 | 0.01 | 0.23 | — | 0.28 | — | 1.74 | 0.14 | 0.20 | 0.41 | — | 0.00 | 0.25 | 1.05 | 0.04 | 0.04 |
| Dec 31, 2012 | 0.00 | 0.00 | 0.23 | — | 0.49 | — | 1.76 | 0.18 | 0.18 | 0.38 | — | 0.00 | 0.35 | 0.00 | 0.05 | — |
| Dec 31, 2011 | 0.00 | 0.00 | 0.26 | — | 1.04 | — | 1.56 | 0.38 | 0.21 | 0.40 | — | — | 0.38 | — | 0.00 | — |
| Dec 31, 2010 | 0.00 | 0.00 | 0.29 | — | 1.99 | — | 1.24 | 0.35 | 0.13 | 0.48 | — | — | 0.45 | — | 0.00 | — |
| Dec 31, 2009 | 0.01 | 0.00 | 0.20 | — | 4.02 | — | 1.15 | 0.39 | 0.15 | 0.41 | — | — | 0.01 | — | 0.00 | — |
| Dec 31, 2008 | 0.09 | 0.00 | 0.08 | — | 4.91 | — | 2.52 | 0.48 | 0.00 | 0.49 | — | — | 0.00 | — | 0.00 | — |
| Dec 31, 2007 | 0.08 | 0.01 | 0.00 | — | 0.35 | — | 1.24 | 0.49 | 0.00 | 0.45 | — | — | 0.00 | — | 0.00 | — |
| Dec 31, 2006 | 0.10 | 0.03 | 0.00 | — | 0.45 | — | 0.80 | 0.00 | 0.00 | 0.39 | — | — | 0.00 | — | 0.00 | — |
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., debt to equity, long-term trends, comparison to sector (software & services)
| Mastercard Inc. | Software & Services | |
|---|---|---|
| Dec 31, 2022 | 2.23 | 0.71 |
| Dec 31, 2021 | 1.90 | 0.83 |
| Dec 31, 2020 | 1.98 | 0.95 |
| Dec 31, 2019 | 1.45 | 1.04 |
| Dec 31, 2018 | 1.17 | 1.07 |
| Dec 31, 2017 | 0.99 | 1.14 |
| Dec 31, 2016 | 0.92 | 0.90 |
| Dec 31, 2015 | 0.55 | 0.73 |
| Dec 31, 2014 | 0.22 | 0.54 |
| Dec 31, 2013 | 0.00 | 0.46 |
| Dec 31, 2012 | 0.00 | 0.44 |
| Dec 31, 2011 | 0.00 | 0.47 |
| Dec 31, 2010 | 0.00 | 0.46 |
| Dec 31, 2009 | 0.01 | 0.44 |
| Dec 31, 2008 | 0.09 | 0.56 |
| Dec 31, 2007 | 0.08 | 0.50 |
| Dec 31, 2006 | 0.10 | 0.31 |
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., debt to equity, long-term trends, comparison to industry (information technology)
| Mastercard Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2022 | 2.23 | 0.70 |
| Dec 31, 2021 | 1.90 | 0.82 |
| Dec 31, 2020 | 1.98 | 0.95 |
| Dec 31, 2019 | 1.45 | 0.97 |
| Dec 31, 2018 | 1.17 | 0.82 |
| Dec 31, 2017 | 0.99 | 0.80 |
| Dec 31, 2016 | 0.92 | 0.65 |
| Dec 31, 2015 | 0.55 | 0.56 |
| Dec 31, 2014 | 0.22 | 0.38 |
| Dec 31, 2013 | 0.00 | 0.28 |
| Dec 31, 2012 | 0.00 | 0.24 |
| Dec 31, 2011 | 0.00 | 0.27 |
| Dec 31, 2010 | 0.00 | 0.24 |
| Dec 31, 2009 | 0.01 | 0.25 |
| Dec 31, 2008 | 0.09 | 0.28 |
| Dec 31, 2007 | 0.08 | 0.26 |
| Dec 31, 2006 | 0.10 | 0.19 |
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).