Return on Equity (ROE)
since 2006
Calculation
Mastercard Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Total Mastercard Incorporated stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 157.67% | = | 100 | × | 9,930) | ÷ | 6,298) |
| Dec 31, 2021 | 118.80% | = | 100 | × | 8,687) | ÷ | 7,312) |
| Dec 31, 2020 | 100.31% | = | 100 | × | 6,411) | ÷ | 6,391) |
| Dec 31, 2019 | 137.76% | = | 100 | × | 8,118) | ÷ | 5,893) |
| Dec 31, 2018 | 108.60% | = | 100 | × | 5,859) | ÷ | 5,395) |
| Dec 31, 2017 | 71.60% | = | 100 | × | 3,915) | ÷ | 5,468) |
| Dec 31, 2016 | 71.76% | = | 100 | × | 4,059) | ÷ | 5,656) |
| Dec 31, 2015 | 63.17% | = | 100 | × | 3,808) | ÷ | 6,028) |
| Dec 31, 2014 | 53.27% | = | 100 | × | 3,617) | ÷ | 6,790) |
| Dec 31, 2013 | 41.64% | = | 100 | × | 3,116) | ÷ | 7,484) |
| Dec 31, 2012 | 39.89% | = | 100 | × | 2,759) | ÷ | 6,917) |
| Dec 31, 2011 | 32.48% | = | 100 | × | 1,906) | ÷ | 5,868) |
| Dec 31, 2010 | 35.47% | = | 100 | × | 1,846) | ÷ | 5,205) |
| Dec 31, 2009 | 41.74% | = | 100 | × | 1,463) | ÷ | 3,504) |
| Dec 31, 2008 | -13.17% | = | 100 | × | (254) | ÷ | 1,927) |
| Dec 31, 2007 | 35.87% | = | 100 | × | 1,086) | ÷ | 3,027) |
| Dec 31, 2006 | 2.12% | = | 100 | × | 50) | ÷ | 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 performance from 2006 to 2022 is characterized by a significant and accelerating expansion in Return on Equity (ROE), driven by substantial growth in net income coupled with a constrained stockholders' equity base.
- Net Income Trajectory
- Net income exhibited a strong long-term upward trend, increasing from 50 million USD in 2006 to 9,930 million USD by 2022. Although a notable loss was recorded in 2008 (-254 million USD) and a temporary contraction occurred in 2020 (6,411 million USD), the general progression reflects consistent and aggressive earnings growth over the 16-year period.
- Stockholders' Equity Dynamics
- Total stockholders' equity did not follow the linear growth pattern seen in net income. Equity peaked in 2013 at 7,484 million USD, followed by a steady decline to 5,395 million USD by 2018. While there was a subsequent recovery reaching 7,312 million USD in 2021, equity ended the period at 6,298 million USD in 2022, remaining significantly lower than its 2013 peak despite the massive increase in profitability.
- Return on Equity (ROE) Evolution
- ROE transitioned from a modest 2.12% in 2006 to an exceptional 157.67% in 2022. Following the negative return of -13.17% in 2008, ROE stabilized between 32% and 42% from 2009 to 2013. A period of rapid acceleration commenced in 2014, with ROE surpassing the 100% threshold in 2018 (108.60%) and continuing to climb through 2022. This surge is a direct result of the diverging trends between rising net income and the relatively stagnant or decreasing equity base, indicating highly efficient capital utilization and a potential strategy of returning capital to shareholders through buybacks or dividends.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Comparison to Competitors
Mastercard Inc., ROE, 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 | 157.67% | 31.11% | 33.85% | -10.13% | 30.93% | -3.56% | 7.47% | 12.57% | 43.68% | — | -14.57% | -127.14% | 2.48% | 6.46% | 17.85% | 0.65% |
| Dec 31, 2021 | 118.80% | 30.25% | 32.59% | 1.66% | 25.39% | -1.99% | 30.38% | 20.89% | 43.15% | 262.43% | -22.71% | -78.63% | 9.81% | 6.22% | 14.31% | -8.62% |
| Dec 31, 2020 | 100.31% | 30.05% | 39.66% | — | 23.69% | -2.56% | 27.14% | 35.76% | 37.43% | 83.94% | -76.61% | -24.23% | 0.37% | 4.18% | 13.54% | -19.33% |
| Dec 31, 2019 | 137.76% | 33.17% | 28.03% | — | 47.03% | -2.14% | 45.25% | 41.53% | 38.35% | 50.87% | — | -5.16% | 7.11% | 29.45% | 13.04% | -21.36% |
| Dec 31, 2018 | 108.60% | 39.17% | 27.67% | — | 26.84% | — | 51.96% | 51.44% | 20.03% | 8.37% | — | -15.30% | 1.36% | -2.40% | 12.43% | -20.33% |
| Dec 31, 2017 | 71.60% | 38.50% | 20.02% | — | 20.63% | — | 32.70% | 71.71% | 29.29% | 17.33% | — | -28.52% | 2.40% | -25.53% | 4.17% | -35.11% |
| Dec 31, 2016 | 71.76% | 54.42% | 15.74% | — | 27.38% | — | 65.07% | 84.32% | 23.33% | 18.82% | — | -28.60% | -0.95% | -116.76% | 8.35% | -25.52% |
| Dec 31, 2015 | 63.17% | 49.78% | 8.99% | — | 18.34% | — | 92.48% | 15.65% | 15.23% | 20.42% | — | -33.81% | -6.61% | -35.01% | 7.21% | -22.02% |
| Dec 31, 2014 | 53.27% | 51.32% | 3.96% | — | 11.92% | — | 101.30% | 29.47% | 24.59% | 23.37% | — | -48.33% | -7.64% | -41.85% | 8.48% | -14.53% |
| Dec 31, 2013 | 41.64% | 66.16% | 4.31% | — | 14.21% | — | 72.32% | 24.30% | 27.69% | 24.47% | — | -10.74% | -11.67% | -18.70% | 8.89% | -20.12% |
| Dec 31, 2012 | 39.89% | 61.59% | 12.49% | — | 48.07% | — | 88.04% | 28.86% | 25.58% | 22.85% | — | 0.32% | -0.73% | -15.34% | 7.29% | — |
| Dec 31, 2011 | 32.48% | 58.72% | 14.40% | — | 17.57% | — | 78.73% | 24.24% | 40.55% | 21.49% | — | — | 5.05% | — | 10.53% | — |
| Dec 31, 2010 | 35.47% | 62.79% | 14.92% | — | 45.74% | — | 64.36% | 20.35% | 40.63% | 19.92% | — | — | 7.73% | — | 11.29% | — |
| Dec 31, 2009 | 41.74% | 55.08% | 7.90% | — | -138.29% | — | 59.31% | 17.49% | 36.83% | 22.29% | — | — | 6.46% | — | 9.09% | — |
| Dec 31, 2008 | -13.17% | 66.59% | 19.77% | — | -1,818.25% | — | 91.60% | 23.00% | 48.73% | 23.98% | — | — | 4.06% | — | 12.43% | — |
| Dec 31, 2007 | 35.87% | 60.25% | 15.57% | — | 14.24% | — | 36.59% | 21.62% | 45.23% | 25.26% | — | — | 0.17% | — | 9.08% | — |
| Dec 31, 2006 | 2.12% | 51.38% | 9.82% | — | 8.39% | — | 33.30% | 23.99% | 31.42% | 22.52% | — | — | 14.50% | — | 2.13% | — |
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., ROE, long-term trends, comparison to sector (software & services)
| Mastercard Inc. | Software & Services | |
|---|---|---|
| Dec 31, 2022 | 157.67% | 30.78% |
| Dec 31, 2021 | 118.80% | 35.91% |
| Dec 31, 2020 | 100.31% | 30.34% |
| Dec 31, 2019 | 137.76% | 35.56% |
| Dec 31, 2018 | 108.60% | 20.20% |
| Dec 31, 2017 | 71.60% | 23.83% |
| Dec 31, 2016 | 71.76% | 26.25% |
| Dec 31, 2015 | 63.17% | 23.04% |
| Dec 31, 2014 | 53.27% | 28.09% |
| Dec 31, 2013 | 41.64% | 31.71% |
| Dec 31, 2012 | 39.89% | 32.66% |
| Dec 31, 2011 | 32.48% | 38.82% |
| Dec 31, 2010 | 35.47% | 37.89% |
| Dec 31, 2009 | 41.74% | 35.98% |
| Dec 31, 2008 | -13.17% | 44.03% |
| Dec 31, 2007 | 35.87% | 35.48% |
| Dec 31, 2006 | 2.12% | 28.87% |
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., ROE, long-term trends, comparison to industry (information technology)
| Mastercard Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2022 | 157.67% | 38.03% |
| Dec 31, 2021 | 118.80% | 41.64% |
| Dec 31, 2020 | 100.31% | 35.38% |
| Dec 31, 2019 | 137.76% | 35.94% |
| Dec 31, 2018 | 108.60% | 30.23% |
| Dec 31, 2017 | 71.60% | 23.19% |
| Dec 31, 2016 | 71.76% | 23.00% |
| Dec 31, 2015 | 63.17% | 25.97% |
| Dec 31, 2014 | 53.27% | 25.43% |
| Dec 31, 2013 | 41.64% | 24.73% |
| Dec 31, 2012 | 39.89% | 26.09% |
| Dec 31, 2011 | 32.48% | 29.03% |
| Dec 31, 2010 | 35.47% | 27.62% |
| Dec 31, 2009 | 41.74% | 20.05% |
| Dec 31, 2008 | -13.17% | 25.24% |
| Dec 31, 2007 | 35.87% | 23.67% |
| Dec 31, 2006 | 2.12% | 22.58% |
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).