Return on Assets (ROA)
since 2006
Calculation
Mastercard Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss)1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 25.64% | = | 100 | × | 9,930) | ÷ | 38,724) |
| Dec 31, 2021 | 23.06% | = | 100 | × | 8,687) | ÷ | 37,669) |
| Dec 31, 2020 | 19.09% | = | 100 | × | 6,411) | ÷ | 33,584) |
| Dec 31, 2019 | 27.77% | = | 100 | × | 8,118) | ÷ | 29,236) |
| Dec 31, 2018 | 23.57% | = | 100 | × | 5,859) | ÷ | 24,860) |
| Dec 31, 2017 | 18.36% | = | 100 | × | 3,915) | ÷ | 21,329) |
| Dec 31, 2016 | 21.73% | = | 100 | × | 4,059) | ÷ | 18,675) |
| Dec 31, 2015 | 23.41% | = | 100 | × | 3,808) | ÷ | 16,269) |
| Dec 31, 2014 | 23.60% | = | 100 | × | 3,617) | ÷ | 15,329) |
| Dec 31, 2013 | 21.88% | = | 100 | × | 3,116) | ÷ | 14,242) |
| Dec 31, 2012 | 22.14% | = | 100 | × | 2,759) | ÷ | 12,462) |
| Dec 31, 2011 | 17.82% | = | 100 | × | 1,906) | ÷ | 10,693) |
| Dec 31, 2010 | 20.89% | = | 100 | × | 1,846) | ÷ | 8,837) |
| Dec 31, 2009 | 19.58% | = | 100 | × | 1,463) | ÷ | 7,470) |
| Dec 31, 2008 | -3.92% | = | 100 | × | (254) | ÷ | 6,476) |
| Dec 31, 2007 | 17.35% | = | 100 | × | 1,086) | ÷ | 6,260) |
| Dec 31, 2006 | 0.99% | = | 100 | × | 50) | ÷ | 5,082) |
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 Return on Assets (ROA) reveals a general trajectory of significant growth and high efficiency, characterized by a transition from a negligible 0.99% in 2006 to a robust 25.64% by 2022. This progression indicates a substantial increase in the organization's ability to generate profit from its asset base over the 16-year period.
- Profitability and Asset Expansion
- A consistent upward trend in total assets is observed, growing from 5,082 million dollars in 2006 to 38,724 million dollars in 2022. While the asset base expanded steadily, net income grew at a significantly faster rate, increasing from 50 million dollars to 9,930 million dollars. This disproportionate growth in earnings relative to assets is the primary driver behind the sustained elevation of the ROA.
- Analysis of Performance Volatility
- Significant deviations in ROA occurred during two specific intervals. In 2008, the ROA fell to -3.92% following a net loss of 254 million dollars, marking the only period of negative profitability in the dataset. A second contraction is noted in 2020, where the ROA declined to 19.09% from a peak of 27.77% in 2019, coinciding with a decrease in net income from 8,118 million dollars to 6,411 million dollars.
- Long-term Efficiency and Resilience
- Following the 2008 volatility, the ROA stabilized at high levels, predominantly remaining above 17% from 2009 through 2022. The recovery following the 2020 dip was rapid, with the ratio ascending to 23.06% in 2021 and further increasing to 25.64% in 2022. This pattern demonstrates a resilient operational model capable of maintaining high returns on assets despite periodic macroeconomic disruptions.
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Comparison to Competitors
Mastercard Inc., ROA, 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 | 25.64% | 14.55% | 17.51% | -3.30% | 16.53% | -1.67% | 1.29% | 7.45% | 19.94% | 6.15% | -10.80% | -2.18% | 1.52% | 2.44% | 10.45% | 0.28% |
| Dec 31, 2021 | 23.06% | 13.68% | 17.70% | 0.58% | 15.87% | -0.87% | 4.35% | 13.29% | 18.36% | 10.48% | -16.02% | -4.87% | 6.14% | 2.13% | 8.66% | -3.24% |
| Dec 31, 2020 | 19.09% | 13.78% | 21.66% | — | 14.95% | -1.30% | 3.58% | 16.70% | 14.70% | 8.78% | -43.35% | -2.95% | 0.23% | 1.36% | 8.27% | -7.05% |
| Dec 31, 2019 | 27.77% | 16.04% | 14.22% | — | 29.46% | -1.61% | 6.20% | 24.78% | 13.69% | 10.20% | — | -1.24% | 3.61% | 10.41% | 8.31% | -7.58% |
| Dec 31, 2018 | 23.57% | 16.61% | 13.80% | — | 14.01% | — | 7.07% | 23.39% | 6.40% | 2.79% | — | -2.54% | 0.61% | -0.69% | 7.04% | -6.49% |
| Dec 31, 2017 | 18.36% | 15.18% | 11.65% | — | 8.44% | — | 4.59% | 23.87% | 8.80% | 6.92% | — | -6.30% | 1.02% | -4.39% | 2.53% | -12.89% |
| Dec 31, 2016 | 21.73% | 19.95% | 9.20% | — | 9.69% | — | 10.11% | 23.04% | 8.67% | 7.93% | — | -8.18% | -0.37% | -22.22% | 5.09% | -10.62% |
| Dec 31, 2015 | 23.41% | 16.72% | 5.37% | — | 10.74% | — | 11.94% | 7.35% | 6.92% | 8.96% | — | -8.40% | -2.46% | -10.98% | 4.48% | -10.51% |
| Dec 31, 2014 | 23.60% | 16.41% | 2.49% | — | 4.95% | — | 10.23% | 17.44% | 12.81% | 12.13% | — | -15.32% | -2.54% | -12.59% | 5.43% | -7.93% |
| Dec 31, 2013 | 21.88% | 19.46% | 2.79% | — | 6.76% | — | 13.06% | 15.64% | 15.35% | 13.35% | — | -4.99% | -4.89% | -6.31% | 5.68% | -12.43% |
| Dec 31, 2012 | 22.14% | 15.32% | 8.35% | — | 19.24% | — | 13.93% | 16.91% | 14.00% | 12.74% | — | 0.18% | -0.28% | -7.81% | 4.40% | — |
| Dec 31, 2011 | 17.82% | 14.48% | 9.26% | — | 4.10% | — | 13.62% | 12.41% | 21.30% | 11.62% | — | — | 2.09% | — | 6.57% | — |
| Dec 31, 2010 | 20.89% | 13.87% | 9.52% | — | 7.31% | — | 13.07% | 11.04% | 21.79% | 9.96% | — | — | 3.28% | — | 7.21% | — |
| Dec 31, 2009 | 19.58% | 12.97% | 5.31% | — | -10.62% | — | 12.31% | 9.26% | 18.71% | 11.80% | — | — | 2.93% | — | 5.71% | — |
| Dec 31, 2008 | -3.92% | 13.64% | 14.98% | — | -110.44% | — | 11.26% | 10.22% | 24.29% | 11.68% | — | — | 1.68% | — | 6.93% | — |
| Dec 31, 2007 | 17.35% | 11.57% | 12.67% | — | 7.65% | — | 8.65% | 10.35% | 22.26% | 12.36% | — | — | 0.07% | — | 4.99% | — |
| Dec 31, 2006 | 0.99% | 10.33% | 8.48% | — | 4.14% | — | 9.19% | 15.05% | 18.10% | 11.65% | — | — | 6.55% | — | 1.15% | — |
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., ROA, long-term trends, comparison to sector (software & services)
| Mastercard Inc. | Software & Services | |
|---|---|---|
| Dec 31, 2022 | 25.64% | 11.32% |
| Dec 31, 2021 | 23.06% | 12.19% |
| Dec 31, 2020 | 19.09% | 9.68% |
| Dec 31, 2019 | 27.77% | 10.81% |
| Dec 31, 2018 | 23.57% | 6.11% |
| Dec 31, 2017 | 18.36% | 7.29% |
| Dec 31, 2016 | 21.73% | 8.86% |
| Dec 31, 2015 | 23.41% | 8.53% |
| Dec 31, 2014 | 23.60% | 11.18% |
| Dec 31, 2013 | 21.88% | 13.46% |
| Dec 31, 2012 | 22.14% | 13.36% |
| Dec 31, 2011 | 17.82% | 15.34% |
| Dec 31, 2010 | 20.89% | 14.69% |
| Dec 31, 2009 | 19.58% | 13.64% |
| Dec 31, 2008 | -3.92% | 14.32% |
| Dec 31, 2007 | 17.35% | 12.84% |
| Dec 31, 2006 | 0.99% | 12.19% |
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).
Comparison to Industry (Information Technology)
Mastercard Inc., ROA, long-term trends, comparison to industry (information technology)
| Mastercard Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2022 | 25.64% | 14.33% |
| Dec 31, 2021 | 23.06% | 14.52% |
| Dec 31, 2020 | 19.09% | 11.46% |
| Dec 31, 2019 | 27.77% | 11.67% |
| Dec 31, 2018 | 23.57% | 10.94% |
| Dec 31, 2017 | 18.36% | 9.00% |
| Dec 31, 2016 | 21.73% | 9.68% |
| Dec 31, 2015 | 23.41% | 11.51% |
| Dec 31, 2014 | 23.60% | 12.33% |
| Dec 31, 2013 | 21.88% | 13.22% |
| Dec 31, 2012 | 22.14% | 14.06% |
| Dec 31, 2011 | 17.82% | 15.11% |
| Dec 31, 2010 | 20.89% | 14.45% |
| Dec 31, 2009 | 19.58% | 10.04% |
| Dec 31, 2008 | -3.92% | 11.87% |
| Dec 31, 2007 | 17.35% | 11.93% |
| Dec 31, 2006 | 0.99% | 12.20% |
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).