Stock Analysis on Net

Mastercard Inc. (NYSE:MA)

Analysis of Liquidity Ratios 

Microsoft Excel

Liquidity Ratios (Summary)

Mastercard Inc., liquidity ratios

Microsoft Excel
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

Microsoft Excel
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

Microsoft Excel
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

Microsoft Excel
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.