Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Mastercard Inc., liquidity ratios
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.29 | 1.61 | 1.42 | 1.39 | 1.57 | |
| Quick ratio | 1.12 | 1.45 | 1.27 | 1.27 | 1.45 | |
| Cash ratio | 0.79 | 1.09 | 0.81 | 0.86 | 1.07 |
Based on: 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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Mastercard Inc. current ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Mastercard Inc. quick ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Mastercard Inc. cash ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Current Ratio
Mastercard Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 16,949) | 19,113) | 16,902) | 16,171) | 13,797) | |
| Current liabilities | 13,162) | 11,847) | 11,904) | 11,593) | 8,793) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.29 | 1.61 | 1.42 | 1.39 | 1.57 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Accenture PLC | 1.25 | 1.40 | 1.40 | 1.34 | 1.23 | |
| Adobe Inc. | 1.25 | 1.48 | 0.79 | 1.13 | 2.05 | |
| Fidelity National Information Services Inc. | 0.74 | 0.80 | 0.84 | 1.19 | 0.92 | |
| International Business Machines Corp. | 0.88 | 0.98 | 1.02 | 1.29 | 1.33 | |
| Intuit Inc. | 1.94 | 2.26 | 1.83 | 1.14 | 0.73 | |
| Microsoft Corp. | 2.08 | 2.52 | 2.53 | 2.90 | 2.48 | |
| Oracle Corp. | 2.30 | 3.03 | 2.49 | 3.96 | 3.08 | |
| PayPal Holdings Inc. | 1.22 | 1.33 | 1.43 | 1.27 | 1.43 | |
| Salesforce Inc. | 1.23 | 1.08 | 0.95 | 0.92 | 0.83 | |
| ServiceNow Inc. | 1.05 | 1.21 | 1.03 | 1.17 | 1.15 | |
| Visa Inc. | 1.75 | 1.91 | 1.56 | 1.61 | 1.90 | |
| Current Ratio, Sector | ||||||
| Software & Services | 1.56 | 1.76 | 1.72 | 2.03 | — | |
| Current Ratio, Industry | ||||||
| Information Technology | 1.58 | 1.77 | 1.71 | 1.82 | — | |
Based on: 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).
1 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 16,949 ÷ 13,162 = 1.29
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Mastercard Inc. current ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Quick Ratio
Mastercard Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 7,421) | 10,113) | 6,988) | 6,682) | 5,933) | |
| Restricted cash for litigation settlement | 586) | 586) | 584) | 553) | 546) | |
| Investments | 473) | 483) | 688) | 1,696) | 1,849) | |
| Accounts receivable | 3,006) | 2,646) | 2,514) | 2,276) | 1,969) | |
| Settlement assets | 1,319) | 1,706) | 2,995) | 2,452) | 1,375) | |
| Restricted security deposits held for customers | 1,873) | 1,696) | 1,370) | 1,080) | 1,085) | |
| Total quick assets | 14,678) | 17,230) | 15,139) | 14,739) | 12,757) | |
| Current liabilities | 13,162) | 11,847) | 11,904) | 11,593) | 8,793) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.12 | 1.45 | 1.27 | 1.27 | 1.45 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Accenture PLC | 1.14 | 1.29 | 1.29 | 1.24 | 1.12 | |
| Adobe Inc. | 1.11 | 1.34 | 0.70 | 1.06 | 2.00 | |
| Fidelity National Information Services Inc. | 0.70 | 0.77 | 0.80 | 1.06 | 0.85 | |
| International Business Machines Corp. | 0.67 | 0.83 | 0.87 | 1.12 | 1.19 | |
| Intuit Inc. | 1.65 | 2.04 | 1.44 | 0.86 | 0.45 | |
| Microsoft Corp. | 1.90 | 2.33 | 2.35 | 2.74 | 2.37 | |
| Oracle Corp. | 2.15 | 2.83 | 2.31 | 3.78 | 2.95 | |
| PayPal Holdings Inc. | 1.19 | 1.30 | 1.40 | 1.24 | 1.40 | |
| Salesforce Inc. | 1.11 | 0.95 | 0.82 | 0.83 | 0.74 | |
| ServiceNow Inc. | 0.95 | 1.10 | 0.92 | 1.03 | 1.05 | |
| Visa Inc. | 1.61 | 1.77 | 1.45 | 1.53 | 1.81 | |
| Quick Ratio, Sector | ||||||
| Software & Services | 1.42 | 1.63 | 1.58 | 1.89 | — | |
| Quick Ratio, Industry | ||||||
| Information Technology | 1.35 | 1.55 | 1.51 | 1.62 | — | |
Based on: 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).
1 2021 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 14,678 ÷ 13,162 = 1.12
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Mastercard Inc. quick ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Cash Ratio
Mastercard Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 7,421) | 10,113) | 6,988) | 6,682) | 5,933) | |
| Restricted cash for litigation settlement | 586) | 586) | 584) | 553) | 546) | |
| Investments | 473) | 483) | 688) | 1,696) | 1,849) | |
| Restricted security deposits held for customers | 1,873) | 1,696) | 1,370) | 1,080) | 1,085) | |
| Total cash assets | 10,353) | 12,878) | 9,630) | 10,011) | 9,413) | |
| Current liabilities | 13,162) | 11,847) | 11,904) | 11,593) | 8,793) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.79 | 1.09 | 0.81 | 0.86 | 1.07 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Accenture PLC | 0.52 | 0.67 | 0.55 | 0.50 | 0.42 | |
| Adobe Inc. | 0.84 | 1.09 | 0.51 | 0.75 | 1.65 | |
| Fidelity National Information Services Inc. | 0.14 | 0.16 | 0.11 | 0.22 | 0.17 | |
| International Business Machines Corp. | 0.22 | 0.36 | 0.24 | 0.32 | 0.34 | |
| Intuit Inc. | 1.46 | 2.00 | 1.39 | 0.81 | 0.40 | |
| Microsoft Corp. | 1.47 | 1.89 | 1.93 | 2.29 | 2.06 | |
| Oracle Corp. | 1.93 | 2.50 | 2.03 | 3.50 | 2.73 | |
| PayPal Holdings Inc. | 1.06 | 1.21 | 1.24 | 1.13 | 1.05 | |
| Salesforce Inc. | 0.67 | 0.54 | 0.39 | 0.45 | 0.30 | |
| ServiceNow Inc. | 0.67 | 0.83 | 0.61 | 0.74 | 0.85 | |
| Visa Inc. | 1.38 | 1.57 | 1.11 | 1.28 | 1.56 | |
| Cash Ratio, Sector | ||||||
| Software & Services | 1.06 | 1.26 | 1.16 | 1.44 | — | |
| Cash Ratio, Industry | ||||||
| Information Technology | 0.96 | 1.17 | 1.09 | 1.17 | — | |
Based on: 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).
1 2021 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 10,353 ÷ 13,162 = 0.79
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Mastercard Inc. cash ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |