Net Profit Margin
since 2006
Calculation
Mastercard Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income (loss)1 | ÷ | Net revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 44.66% | = | 100 | × | 9,930) | ÷ | 22,237) |
| Dec 31, 2021 | 46.00% | = | 100 | × | 8,687) | ÷ | 18,884) |
| Dec 31, 2020 | 41.90% | = | 100 | × | 6,411) | ÷ | 15,301) |
| Dec 31, 2019 | 48.08% | = | 100 | × | 8,118) | ÷ | 16,883) |
| Dec 31, 2018 | 39.19% | = | 100 | × | 5,859) | ÷ | 14,950) |
| Dec 31, 2017 | 31.33% | = | 100 | × | 3,915) | ÷ | 12,497) |
| Dec 31, 2016 | 37.67% | = | 100 | × | 4,059) | ÷ | 10,776) |
| Dec 31, 2015 | 39.39% | = | 100 | × | 3,808) | ÷ | 9,667) |
| Dec 31, 2014 | 38.18% | = | 100 | × | 3,617) | ÷ | 9,473) |
| Dec 31, 2013 | 37.34% | = | 100 | × | 3,116) | ÷ | 8,346) |
| Dec 31, 2012 | 37.33% | = | 100 | × | 2,759) | ÷ | 7,391) |
| Dec 31, 2011 | 28.39% | = | 100 | × | 1,906) | ÷ | 6,714) |
| Dec 31, 2010 | 33.33% | = | 100 | × | 1,846) | ÷ | 5,539) |
| Dec 31, 2009 | 28.68% | = | 100 | × | 1,463) | ÷ | 5,099) |
| Dec 31, 2008 | -5.09% | = | 100 | × | (254) | ÷ | 4,992) |
| Dec 31, 2007 | 26.70% | = | 100 | × | 1,086) | ÷ | 4,068) |
| Dec 31, 2006 | 1.51% | = | 100 | × | 50) | ÷ | 3,326) |
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 performance from 2006 to 2022 is characterized by substantial growth in both top-line revenue and bottom-line profitability. Net revenue expanded from US$ 3,326 million in 2006 to US$ 22,237 million in 2022, while net income rose from US$ 50 million to US$ 9,930 million over the same period, indicating a significant increase in operational efficiency and scale.
- Early Period Volatility (2006–2009)
- The initial years showed extreme fluctuations in profitability. A sharp increase in net profit margin from 1.51% in 2006 to 26.70% in 2007 was followed by a contraction into negative territory, reaching -5.09% in 2008. However, a rapid recovery was observed by 2009, with the margin rebounding to 28.68%.
- Consistent Margin Expansion (2010–2016)
- A period of sustained profitability growth occurred between 2010 and 2016. The net profit margin generally trended upward, moving from 33.33% in 2010 to a peak of 39.39% in 2015. This suggests a successful scaling of operations where revenue growth outpaced the growth of expenses.
- High-Profitability Phase (2017–2022)
- Following a temporary dip to 31.33% in 2017, the net profit margin entered its highest historical range. A peak of 48.08% was achieved in 2019. Despite a moderate decline in 2020—concurrent with a dip in both net income and net revenue—the margin remained resilient, finishing 2022 at a robust 44.66%.
- Operating Leverage Analysis
- The divergence between revenue growth and net income growth highlights strong operating leverage. While net revenue increased by approximately 6.7 times over the 16-year span, net income increased by nearly 198 times, resulting in the long-term elevation of the net profit margin from near-zero to approximately 45%.
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Comparison to Competitors
Mastercard Inc., net profit margin, 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 | 44.66% | 11.17% | 27.01% | -6.84% | 23.84% | -2.99% | 2.71% | 16.23% | 36.69% | 15.83% | -19.61% | -4.85% | 5.45% | 4.49% | 19.38% | 0.57% |
| Dec 31, 2021 | 46.00% | 11.69% | 30.55% | 1.27% | 23.29% | -2.02% | 10.01% | 21.41% | 36.45% | 33.96% | -33.75% | -11.72% | 19.16% | 3.90% | 18.02% | -6.54% |
| Dec 31, 2020 | 41.90% | 11.52% | 40.88% | — | 22.02% | -4.07% | 7.59% | 23.78% | 30.96% | 25.94% | -106.75% | -7.83% | 0.74% | 2.62% | 18.03% | -13.25% |
| Dec 31, 2019 | 48.08% | 11.06% | 26.42% | — | 42.33% | -4.61% | 12.22% | 22.95% | 31.18% | 28.05% | — | -2.82% | 8.36% | 18.11% | 15.84% | -14.82% |
| Dec 31, 2018 | 39.19% | 9.76% | 28.69% | — | 16.17% | — | 10.97% | 20.31% | 15.02% | 9.60% | — | -6.51% | 1.22% | -1.02% | 13.86% | -14.99% |
| Dec 31, 2017 | 31.33% | 9.37% | 23.20% | — | 10.50% | — | 7.27% | 18.76% | 23.57% | 24.74% | — | -12.30% | 2.14% | -7.71% | 5.01% | -26.01% |
| Dec 31, 2016 | 37.67% | 11.82% | 19.96% | — | 11.18% | — | 14.86% | 20.86% | 19.69% | 24.03% | — | -16.39% | -0.71% | -32.49% | 11.01% | -24.94% |
| Dec 31, 2015 | 39.39% | 9.28% | 13.13% | — | 14.83% | — | 16.14% | 8.71% | 13.03% | 26.00% | — | -17.78% | -4.89% | -19.73% | 10.08% | -31.48% |
| Dec 31, 2014 | 38.18% | 9.23% | 6.47% | — | 10.05% | — | 12.96% | 20.13% | 25.42% | 28.62% | — | -37.86% | -5.70% | -26.28% | 12.59% | -36.79% |
| Dec 31, 2013 | 37.34% | 10.80% | 7.15% | — | 11.25% | — | 16.52% | 20.57% | 28.08% | 29.38% | — | -7.38% | -8.87% | -17.36% | 12.63% | -43.55% |
| Dec 31, 2012 | 37.33% | 8.58% | 18.91% | — | 33.17% | — | 15.89% | 19.08% | 23.03% | 26.89% | — | 0.29% | -0.51% | -15.32% | 10.39% | — |
| Dec 31, 2011 | 28.39% | 8.33% | 19.75% | — | 6.28% | — | 14.83% | 16.46% | 33.10% | 23.99% | — | — | 3.89% | — | 14.42% | — |
| Dec 31, 2010 | 33.33% | 7.71% | 20.39% | — | 13.52% | — | 14.85% | 16.61% | 30.02% | 22.87% | — | — | 6.18% | — | 17.17% | — |
| Dec 31, 2009 | 28.68% | 6.86% | 13.12% | — | -17.58% | — | 14.02% | 14.05% | 24.93% | 24.05% | — | — | 4.03% | — | 12.33% | — |
| Dec 31, 2008 | -5.09% | 6.68% | 24.35% | — | -178.51% | — | 11.90% | 15.52% | 29.26% | 24.61% | — | — | 2.45% | — | 14.21% | — |
| Dec 31, 2007 | 26.70% | 5.79% | 22.92% | — | 18.34% | — | 10.55% | 16.46% | 27.51% | 23.75% | — | — | 0.10% | — | 10.76% | — |
| Dec 31, 2006 | 1.51% | 5.34% | 19.64% | — | 9.61% | — | 10.38% | 17.80% | 28.45% | 23.51% | — | — | 9.19% | — | 2.26% | — |
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., net profit margin, long-term trends, comparison to sector (software & services)
| Mastercard Inc. | Software & Services | |
|---|---|---|
| Dec 31, 2022 | 44.66% | 21.55% |
| Dec 31, 2021 | 46.00% | 25.12% |
| Dec 31, 2020 | 41.90% | 20.08% |
| Dec 31, 2019 | 48.08% | 21.61% |
| Dec 31, 2018 | 39.19% | 12.10% |
| Dec 31, 2017 | 31.33% | 15.36% |
| Dec 31, 2016 | 37.67% | 16.49% |
| Dec 31, 2015 | 39.39% | 14.57% |
| Dec 31, 2014 | 38.18% | 18.21% |
| Dec 31, 2013 | 37.34% | 20.55% |
| Dec 31, 2012 | 37.33% | 18.62% |
| Dec 31, 2011 | 28.39% | 20.48% |
| Dec 31, 2010 | 33.33% | 19.41% |
| Dec 31, 2009 | 28.68% | 17.17% |
| Dec 31, 2008 | -5.09% | 16.67% |
| Dec 31, 2007 | 26.70% | 15.91% |
| Dec 31, 2006 | 1.51% | 15.65% |
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., net profit margin, long-term trends, comparison to industry (information technology)
| Mastercard Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2022 | 44.66% | 22.27% |
| Dec 31, 2021 | 46.00% | 23.48% |
| Dec 31, 2020 | 41.90% | 19.76% |
| Dec 31, 2019 | 48.08% | 19.73% |
| Dec 31, 2018 | 39.19% | 18.59% |
| Dec 31, 2017 | 31.33% | 17.77% |
| Dec 31, 2016 | 37.67% | 17.58% |
| Dec 31, 2015 | 39.39% | 18.32% |
| Dec 31, 2014 | 38.18% | 19.33% |
| Dec 31, 2013 | 37.34% | 20.15% |
| Dec 31, 2012 | 37.33% | 20.07% |
| Dec 31, 2011 | 28.39% | 20.71% |
| Dec 31, 2010 | 33.33% | 20.19% |
| Dec 31, 2009 | 28.68% | 14.45% |
| Dec 31, 2008 | -5.09% | 15.07% |
| Dec 31, 2007 | 26.70% | 15.71% |
| Dec 31, 2006 | 1.51% | 16.26% |
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).