Stock Analysis on Net

Mastercard Inc. (NYSE:MA)

This company has been moved to the archive! The financial data has not been updated since April 27, 2023.

Analysis of Solvency Ratios 
Quarterly Data

Microsoft Excel

Solvency Ratios (Summary)

Mastercard Inc., solvency ratios (quarterly data)

Microsoft Excel
Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Debt Ratios
Debt to equity 2.92 2.23 2.28 2.35 2.08 1.90 2.07 2.16 2.19 1.98 2.17 1.93 2.31 1.45 1.56 1.56 1.22 1.17 1.10 1.11 1.13
Debt to capital 0.74 0.69 0.70 0.70 0.68 0.66 0.67 0.68 0.69 0.66 0.68 0.66 0.70 0.59 0.61 0.61 0.55 0.54 0.52 0.53 0.53
Debt to assets 0.40 0.36 0.39 0.40 0.39 0.37 0.39 0.40 0.40 0.38 0.40 0.39 0.41 0.29 0.30 0.32 0.27 0.25 0.27 0.26 0.28
Financial leverage 7.31 6.15 5.91 5.87 5.28 5.15 5.28 5.42 5.50 5.25 5.45 4.97 5.68 4.96 5.25 4.94 4.55 4.61 4.04 4.27 4.02
Coverage Ratios
Interest coverage 24.96 25.91 26.37 26.36 26.09 24.91 23.55 21.69 20.05 21.42 24.80 30.25 39.52 44.44 41.92 43.71 41.23 39.73

Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).


Debt to equity
The debt to equity ratio exhibits an overall upward trend from March 2018 through March 2023. Starting at 1.13 in early 2018, the ratio fluctuates moderately until late 2019 when a notable increase occurs, reaching 2.31 by March 2020. Despite some fluctuations afterward, the ratio continues to rise, peaking at 2.92 in March 2023. This pattern suggests a growing reliance on debt financing relative to equity over the period.
Debt to capital
This ratio reflects a similar increasing trend, rising from 0.53 in March 2018 to 0.74 by March 2023. Incremental increases are evident in the 2019–2020 period, followed by stability around the 0.68 to 0.70 range until a further increase in early 2023. This indicates an increasing proportion of debt within the company's capital structure.
Debt to assets
The debt to assets ratio also trends upward over the analyzed quarters, moving from 0.28 in early 2018 to 0.40 by the end of 2022, briefly dipping to 0.36 in March 2023 before climbing back to 0.40. Notably, the ratio jumps sharply in the first quarter of 2020, likely influenced by external economic factors during that time. The increasing ratio suggests a higher share of the company’s assets being financed through debt.
Financial leverage
Financial leverage shows a general increasing movement from 4.02 in March 2018 to 7.31 by March 2023. While there are occasional declines, the overall pattern is one of rising leverage, particularly marked from 2019 onward. This trend indicates an expansion in the use of borrowed funds relative to equity, consistent with the increases observed in the debt ratios.
Interest coverage
Interest coverage data are available only from late 2018 onward and reveal a declining trend. The ratio peaks at around 44.44 in December 2019 but subsequently decreases steadily over the following quarters, reaching approximately 24.96 by March 2023. This decline suggests that the company’s ability to meet interest expenses from operating earnings has weakened over time, potentially reflecting increased debt levels or reduced operating profitability relative to interest obligations.

Debt Ratios


Coverage Ratios


Debt to Equity

Mastercard Inc., debt to equity calculation (quarterly data)

Microsoft Excel
Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Selected Financial Data (US$ in millions)
Short-term debt 276 274 957 735 778 792 650 649 649 649 500 500 500
Long-term debt 15,292 13,749 13,577 13,746 13,868 13,109 13,211 13,250 13,221 12,023 12,574 12,498 12,466 8,527 7,735 7,806 5,799 5,834 5,858 5,858 6,469
Total debt 15,568 14,023 14,534 14,481 14,646 13,901 13,861 13,899 13,870 12,672 12,574 12,498 12,466 8,527 7,735 7,806 6,299 6,334 6,358 5,858 6,469
 
Total Mastercard Incorporated stockholders’ equity 5,330 6,298 6,361 6,171 7,034 7,312 6,703 6,442 6,327 6,391 5,796 6,470 5,398 5,893 4,949 5,008 5,168 5,395 5,775 5,257 5,703
Solvency Ratio
Debt to equity1 2.92 2.23 2.28 2.35 2.08 1.90 2.07 2.16 2.19 1.98 2.17 1.93 2.31 1.45 1.56 1.56 1.22 1.17 1.10 1.11 1.13
Benchmarks
Debt to Equity, Competitors2
Accenture PLC 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Adobe Inc. 0.26 0.29 0.29 0.30 0.30 0.28 0.29 0.30 0.30 0.31 0.35 0.38 0.39 0.39 0.40 0.42 0.42
Cadence Design Systems Inc. 0.23 0.27 0.29 0.13 0.13 0.13 0.13 0.14 0.14 0.14 0.29 0.31 0.32
CrowdStrike Holdings Inc. 0.67 0.72 0.78 0.82 0.87 0.85 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Fair Isaac Corp. 8.46 4.32 2.69 2.52 3.75 4.43 3.81 2.85 3.07 3.32 3.65
International Business Machines Corp. 2.72 2.32 2.53 2.59 2.85 2.74 2.45 2.51 2.64 2.99 3.08 3.15 3.22
Intuit Inc. 0.43 0.42 0.40 0.43 0.21 0.21 0.20 0.27 0.45 0.66 0.08 0.11 0.12 0.12 0.11 0.15 0.15
Microsoft Corp. 0.28 0.30 0.31 0.33 0.35 0.41 0.43 0.46 0.52 0.54 0.58 0.63 0.66 0.71 0.77 0.79 0.89
Oracle Corp. 16.08 7.79 8.94 7.46 5.93 3.63 3.32 2.95
Palantir Technologies Inc. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.11
Palo Alto Networks Inc. 7.24 17.51 10.89 31.19 7.08 5.08 3.20 3.04 4.18 2.80 1.98 0.91 0.95 0.90 1.08 1.45 1.30
Salesforce Inc. 0.18 0.18 0.19 0.24 0.06 0.06 0.07 0.07 0.08 0.08 0.08 0.17 0.19
ServiceNow Inc. 0.27 0.30 0.33 0.35 0.39 0.43 0.45 0.48 0.53 0.58 0.64 0.28 0.31
Synopsys Inc. 0.00 0.00 0.00 0.00 0.00 0.02 0.02 0.02 0.03 0.03 0.03 0.06 0.08 0.03 0.04 0.07 0.14
Workday Inc. 0.86 0.41 0.44 0.48 0.55 0.55 0.58 0.63 0.68 0.51 0.54 0.56 0.60

Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Q1 2023 Calculation
Debt to equity = Total debt ÷ Total Mastercard Incorporated stockholders’ equity
= 15,568 ÷ 5,330 = 2.92

2 Click competitor name to see calculations.


The data reveals the evolution of total debt, stockholders’ equity, and the debt to equity ratio over a series of quarterly periods. A detailed examination highlights several notable trends and changes in financial structure.

Total Debt
Total debt demonstrates an overall increasing pattern from March 2018 to March 2023. Initial quarters show a relatively stable range around 6,000 to 8,500 million US dollars. Starting in early 2020, there is a marked rise, peaking near 15,568 million US dollars by March 2023. This sharp increase post-2019 suggests heightened leverage or increased borrowing activity during this period.
Total Stockholders’ Equity
Stockholders’ equity exhibits more volatility compared to total debt. From March 2018 through early 2020, equity fluctuates moderately between approximately 5,000 and 6,500 million US dollars. In 2020 and 2021, it reaches its highest levels, surpassing 7,000 million at times. However, from late 2021 onward, equity trends downward, settling near 5,330 million US dollars by March 2023, the lowest within the observed timeframe.
Debt to Equity Ratio
The debt to equity ratio displays a clear upward trend over the observed periods, reflecting increasing leverage. Starting at around 1.1 in early 2018, the ratio stays relatively consistent until mid-2019 when it begins to climb sharply, reaching 2.31 by March 2020. Following slight fluctuations, the ratio remains elevated above 2.0 through late 2022 and spikes to 2.92 by March 2023. This indicates a significant rise in debt levels relative to equity, possibly implying greater financial risk or an aggressive capital structure strategy.

Debt to Capital

Mastercard Inc., debt to capital calculation (quarterly data)

Microsoft Excel
Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Selected Financial Data (US$ in millions)
Short-term debt 276 274 957 735 778 792 650 649 649 649 500 500 500
Long-term debt 15,292 13,749 13,577 13,746 13,868 13,109 13,211 13,250 13,221 12,023 12,574 12,498 12,466 8,527 7,735 7,806 5,799 5,834 5,858 5,858 6,469
Total debt 15,568 14,023 14,534 14,481 14,646 13,901 13,861 13,899 13,870 12,672 12,574 12,498 12,466 8,527 7,735 7,806 6,299 6,334 6,358 5,858 6,469
Total Mastercard Incorporated stockholders’ equity 5,330 6,298 6,361 6,171 7,034 7,312 6,703 6,442 6,327 6,391 5,796 6,470 5,398 5,893 4,949 5,008 5,168 5,395 5,775 5,257 5,703
Total capital 20,898 20,321 20,895 20,652 21,680 21,213 20,564 20,341 20,197 19,063 18,370 18,968 17,864 14,420 12,684 12,814 11,467 11,729 12,133 11,115 12,172
Solvency Ratio
Debt to capital1 0.74 0.69 0.70 0.70 0.68 0.66 0.67 0.68 0.69 0.66 0.68 0.66 0.70 0.59 0.61 0.61 0.55 0.54 0.52 0.53 0.53
Benchmarks
Debt to Capital, Competitors2
Accenture PLC 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Adobe Inc. 0.20 0.23 0.22 0.23 0.23 0.22 0.22 0.23 0.23 0.24 0.26 0.27 0.28 0.28 0.29 0.29 0.29
Cadence Design Systems Inc. 0.19 0.21 0.23 0.12 0.11 0.11 0.12 0.12 0.12 0.12 0.23 0.24 0.24
CrowdStrike Holdings Inc. 0.40 0.42 0.44 0.45 0.47 0.46 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Fair Isaac Corp. 1.72 1.76 1.76 1.59 1.49 1.10 0.89 0.81 0.73 0.72 0.79 0.82 0.79 0.74 0.75 0.77 0.79
International Business Machines Corp. 0.73 0.70 0.72 0.72 0.74 0.73 0.71 0.72 0.73 0.75 0.76 0.76 0.76
Intuit Inc. 0.30 0.30 0.29 0.30 0.17 0.17 0.17 0.21 0.31 0.40 0.08 0.10 0.10 0.10 0.10 0.13 0.13
Microsoft Corp. 0.22 0.23 0.23 0.25 0.26 0.29 0.30 0.32 0.34 0.35 0.37 0.39 0.40 0.41 0.44 0.44 0.47
Oracle Corp. 1.07 1.09 1.12 1.15 1.02 0.94 0.89 0.90 0.88 0.86 0.78 0.77 0.75
Palantir Technologies Inc. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.10
Palo Alto Networks Inc. 0.88 0.95 0.92 0.97 0.88 0.84 0.76 0.75 0.81 0.74 0.66 0.48 0.49 0.47 0.52 0.59 0.56
Salesforce Inc. 0.15 0.15 0.16 0.19 0.06 0.06 0.06 0.07 0.07 0.07 0.08 0.15 0.16
ServiceNow Inc. 0.21 0.23 0.25 0.26 0.28 0.30 0.31 0.33 0.35 0.37 0.39 0.22 0.24
Synopsys Inc. 0.00 0.00 0.00 0.00 0.00 0.02 0.02 0.02 0.02 0.03 0.03 0.05 0.07 0.03 0.03 0.07 0.13
Workday Inc. 0.46 0.29 0.30 0.32 0.35 0.35 0.37 0.39 0.41 0.34 0.35 0.36 0.37

Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Q1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 15,568 ÷ 20,898 = 0.74

2 Click competitor name to see calculations.


The financial data reveals several notable trends over the analyzed quarterly periods, specifically focusing on the company's debt structure and capital base.

Total Debt

Total debt amounts show a general increasing trend from March 31, 2018, through March 31, 2023. Beginning at approximately $6.47 billion in early 2018, debt levels moderately increased with some fluctuations up to late 2019. A significant rise is observed starting March 31, 2020, with the total debt crossing $12 billion and continuing to increase, peaking at $15.57 billion by March 31, 2023. This indicates an increased reliance on debt financing over the period, particularly pronounced during and after the onset of 2020.

Total Capital

Total capital also exhibits an upward trajectory overall, beginning near $12.17 billion in the first quarter of 2018 and rising to about $20.9 billion by the first quarter of 2023. Despite some quarterly fluctuations, the total capital base expanded significantly, especially from around March 2020 onward, aligning with the observed increase in total debt. This increment suggests a growth in the company’s capital structure, potentially reflecting increased equity or retained earnings alongside rising debt.

Debt to Capital Ratio

The debt to capital ratio reflects the proportion of debt financing relative to the total capital. Initially stable at approximately 0.53 through the early part of the dataset (2018), this ratio increased notably beginning mid-2019. It rose sharply in early 2020, reaching roughly 0.7, and hovered around this elevated level with minor deviations throughout 2020 to early 2023. The latest figure in March 2023 stands at about 0.74, the highest in the period analyzed. This pattern indicates a steadily growing dependency on debt within the overall capital structure, suggesting a strategic shift or increased leverage over time.

In summary, the company has progressively increased its total debt as well as its overall capital base, with the share of debt in total capital rising rather consistently from 2019 onwards. This trend points toward an increased leveraging strategy, potentially aimed at capitalizing on favorable borrowing conditions or supporting expanded operations. It may warrant further examination of debt servicing capacity and associated risks given the heightened leverage levels observed.


Debt to Assets

Mastercard Inc., debt to assets calculation (quarterly data)

Microsoft Excel
Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Selected Financial Data (US$ in millions)
Short-term debt 276 274 957 735 778 792 650 649 649 649 500 500 500
Long-term debt 15,292 13,749 13,577 13,746 13,868 13,109 13,211 13,250 13,221 12,023 12,574 12,498 12,466 8,527 7,735 7,806 5,799 5,834 5,858 5,858 6,469
Total debt 15,568 14,023 14,534 14,481 14,646 13,901 13,861 13,899 13,870 12,672 12,574 12,498 12,466 8,527 7,735 7,806 6,299 6,334 6,358 5,858 6,469
 
Total assets 38,936 38,724 37,612 36,231 37,163 37,669 35,410 34,911 34,800 33,584 31,594 32,127 30,648 29,236 25,981 24,731 23,520 24,860 23,340 22,471 22,944
Solvency Ratio
Debt to assets1 0.40 0.36 0.39 0.40 0.39 0.37 0.39 0.40 0.40 0.38 0.40 0.39 0.41 0.29 0.30 0.32 0.27 0.25 0.27 0.26 0.28
Benchmarks
Debt to Assets, Competitors2
Accenture PLC 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Adobe Inc. 0.14 0.15 0.15 0.16 0.16 0.15 0.16 0.16 0.16 0.17 0.18 0.19 0.19 0.20 0.21 0.21 0.21
Cadence Design Systems Inc. 0.13 0.15 0.16 0.08 0.08 0.08 0.08 0.08 0.09 0.09 0.17 0.17 0.18
CrowdStrike Holdings Inc. 0.19 0.20 0.22 0.24 0.26 0.27 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Fair Isaac Corp. 1.32 1.29 1.34 1.21 1.12 0.80 0.66 0.61 0.55 0.52 0.59 0.61 0.59 0.58 0.60 0.62 0.64
International Business Machines Corp. 0.44 0.40 0.40 0.39 0.41 0.39 0.38 0.38 0.38 0.39 0.42 0.42 0.42
Intuit Inc. 0.26 0.25 0.24 0.26 0.14 0.13 0.13 0.16 0.24 0.31 0.05 0.06 0.07 0.07 0.06 0.08 0.09
Microsoft Corp. 0.14 0.14 0.14 0.16 0.16 0.17 0.19 0.20 0.21 0.21 0.23 0.25 0.25 0.25 0.28 0.28 0.30
Oracle Corp. 0.70 0.69 0.72 0.73 0.67 0.64 0.59 0.64 0.62 0.62 0.53 0.52 0.51
Palantir Technologies Inc. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.07
Palo Alto Networks Inc. 0.29 0.30 0.33 0.35 0.35 0.31 0.33 0.33 0.36 0.34 0.23 0.20 0.21 0.22 0.25 0.27 0.28
Salesforce Inc. 0.11 0.11 0.12 0.15 0.04 0.04 0.05 0.05 0.05 0.05 0.06 0.09 0.10
ServiceNow Inc. 0.11 0.11 0.13 0.13 0.14 0.15 0.17 0.17 0.18 0.19 0.22 0.11 0.11
Synopsys Inc. 0.00 0.00 0.00 0.00 0.00 0.01 0.01 0.01 0.02 0.02 0.02 0.03 0.05 0.02 0.02 0.05 0.09
Workday Inc. 0.32 0.18 0.20 0.20 0.22 0.21 0.23 0.24 0.25 0.19 0.20 0.21 0.21

Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Q1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 15,568 ÷ 38,936 = 0.40

2 Click competitor name to see calculations.


The analysis of the quarterly financial data reveals several key trends related to total debt, total assets, and the debt-to-assets ratio over the observed time frame.

Total Debt
Total debt exhibits an overall upward trend across the periods. Initially, it fluctuates moderately between approximately US$5.9 billion and US$8.5 billion throughout 2018 and 2019. Beginning in early 2020, there is a noticeable increase, with debt rising sharply to around US$12.5 billion and then gradually climbing further to exceed US$15.5 billion by the first quarter of 2023. This sustained growth in debt suggests a strategy involving increased leverage or financing activities during these years.
Total Assets
Total assets demonstrate steady growth over the timeframe. Starting at about US$22.9 billion in the first quarter of 2018, assets show incremental increases quarter-over-quarter, reaching nearly US$29.2 billion by the end of 2019. The asset base continues expanding through 2020 to 2023, ending at roughly US$38.9 billion, reflecting a consistent asset accumulation which may indicate business expansion or asset acquisition.
Debt-to-Assets Ratio
The debt-to-assets ratio experiences some fluctuation but generally trends upward. Early values oscillate around 0.25 to 0.30 during 2018 and 2019, indicating moderate leverage. A significant increase is observed in 2020, with the ratio moving above 0.38 and peaking near 0.41, coinciding with the marked increase in total debt. Post-2020, the ratio remains elevated between approximately 0.36 and 0.40, implying that the rise in debt outpaces the growth in assets to some extent, maintaining a relatively higher leverage level than in prior years.

In summary, the data indicates a strategic increase in total debt alongside steady asset growth, resulting in a higher leverage position. This pattern may reflect corporate financing decisions in response to external conditions or initiatives to support expansion and operational needs. The maintenance of a higher debt-to-assets ratio in recent years warrants monitoring to ensure sustainability and manage financial risk appropriately.


Financial Leverage

Mastercard Inc., financial leverage calculation (quarterly data)

Microsoft Excel
Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Selected Financial Data (US$ in millions)
Total assets 38,936 38,724 37,612 36,231 37,163 37,669 35,410 34,911 34,800 33,584 31,594 32,127 30,648 29,236 25,981 24,731 23,520 24,860 23,340 22,471 22,944
Total Mastercard Incorporated stockholders’ equity 5,330 6,298 6,361 6,171 7,034 7,312 6,703 6,442 6,327 6,391 5,796 6,470 5,398 5,893 4,949 5,008 5,168 5,395 5,775 5,257 5,703
Solvency Ratio
Financial leverage1 7.31 6.15 5.91 5.87 5.28 5.15 5.28 5.42 5.50 5.25 5.45 4.97 5.68 4.96 5.25 4.94 4.55 4.61 4.04 4.27 4.02
Benchmarks
Financial Leverage, Competitors2
Accenture PLC 2.05 2.14 2.16 2.16 2.15 2.21 2.18 2.18 2.14 2.18 2.19 2.17 2.19 2.07 2.05 2.05 2.11
Adobe Inc. 1.88 1.93 1.86 1.88 1.89 1.84 1.81 1.85 1.84 1.83 1.91 1.99 2.03 1.97 1.96 1.98 1.98
Cadence Design Systems Inc. 1.76 1.87 1.83 1.66 1.59 1.60 1.60 1.64 1.57 1.58 1.73 1.77 1.75
CrowdStrike Holdings Inc. 3.48 3.53 3.48 3.47 3.39 3.14 2.15 2.04 2.02 1.89 1.75 1.61 6.29
Fair Isaac Corp. 12.73 7.07 4.87 4.85 6.33 7.25 6.41 4.95 5.12 5.37 5.73
International Business Machines Corp. 6.19 5.80 6.27 6.57 7.00 6.98 6.49 6.69 6.95 7.57 7.27 7.50 7.67
Intuit Inc. 1.69 1.69 1.68 1.69 1.53 1.57 1.58 1.65 1.85 2.14 1.64 1.80 1.70 1.68 1.70 1.91 1.77
Microsoft Corp. 2.07 2.19 2.12 2.13 2.21 2.35 2.30 2.34 2.44 2.55 2.49 2.57 2.63 2.80 2.78 2.81 3.00
Oracle Corp. 25.03 13.27 13.90 11.96 9.56 6.79 6.33 5.76
Palantir Technologies Inc. 1.35 1.35 1.39 1.40 1.40 1.42 1.43 1.49 1.67
Palo Alto Networks Inc. 24.69 58.35 32.88 88.29 20.09 16.14 9.59 9.15 11.68 8.23 8.73 4.47 4.50 4.16 4.31 5.33 4.63
Salesforce Inc. 1.58 1.64 1.53 1.60 1.52 1.60 1.47 1.50 1.55 1.63 1.50 1.94 2.02
ServiceNow Inc. 2.43 2.64 2.46 2.65 2.75 2.92 2.68 2.81 2.90 3.07 2.88 2.63 2.73
Synopsys Inc. 1.70 1.71 1.66 1.66 1.65 1.65 1.65 1.64 1.64 1.64 1.67 1.71 1.74 1.57 1.56 1.58 1.68
Workday Inc. 2.68 2.31 2.24 2.36 2.53 2.66 2.55 2.64 2.78 2.74 2.65 2.71 2.85

Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Q1 2023 Calculation
Financial leverage = Total assets ÷ Total Mastercard Incorporated stockholders’ equity
= 38,936 ÷ 5,330 = 7.31

2 Click competitor name to see calculations.


Total assets

Total assets demonstrate a general upward trend over the analyzed periods, increasing from 22,944 million US dollars at the end of Q1 2018 to 38,936 million US dollars by Q1 2023. This growth is not strictly linear, with some periods showing modest declines or slower growth, such as the slight drop observed between Q1 and Q2 of 2022. The most significant increases appear around late 2019 to early 2020 and again from late 2020 through 2021, indicating periods of accelerated asset accumulation.

Total Mastercard Incorporated stockholders’ equity

Stockholders’ equity shows a more fluctuating pattern over time compared to total assets. Starting at 5,703 million US dollars in Q1 2018, equity declines until the end of 2018, reaching 5,395 million, before fluctuating within a range approximately from 5,000 to 7,300 million in subsequent quarters. A notable peak occurs in Q4 2021 at 7,312 million. Thereafter, equity declines significantly, dropping to 5,330 million by Q1 2023. This volatility suggests varying factors impacting retained earnings, share repurchases, or dividend distributions across the periods.

Financial leverage (ratio)

The financial leverage ratio exhibits an overall increasing trend across the five-year span, starting from 4.02 in Q1 2018 and rising to 7.31 by Q1 2023. There are periodic fluctuations within this trend, but the general trajectory indicates progressively greater use of debt or liabilities relative to equity. The ratio notably jumps above 6.0 after mid-2022, suggesting a marked increase in leverage in the most recent periods.

The concurrent increase in total assets alongside a relatively stagnant or declining equity base contributes to this rising leverage ratio. Such a pattern may reflect the company's strategic decisions on financing growth or operational challenges affecting equity levels.


Interest Coverage

Mastercard Inc., interest coverage calculation (quarterly data)

Microsoft Excel
Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Selected Financial Data (US$ in millions)
Net income 2,361 2,525 2,499 2,275 2,631 2,379 2,414 2,066 1,828 1,785 1,513 1,420 1,693 2,100 2,108 2,048 1,862 899 1,899 1,569 1,492
Add: Income tax expense 492 564 573 523 142 444 402 412 362 383 402 270 294 375 426 471 341 316 365 353 311
Add: Interest expense 132 127 120 114 110 108 110 106 107 105 105 101 69 64 63 51 46 47 48 48 43
Earnings before interest and tax (EBIT) 2,985 3,216 3,192 2,912 2,883 2,931 2,926 2,584 2,297 2,273 2,020 1,791 2,056 2,539 2,597 2,570 2,249 1,262 2,312 1,970 1,846
Solvency Ratio
Interest coverage1 24.96 25.91 26.37 26.36 26.09 24.91 23.55 21.69 20.05 21.42 24.80 30.25 39.52 44.44 41.92 43.71 41.23 39.73
Benchmarks
Interest Coverage, Competitors2
Accenture PLC 217.31 195.34 188.01 133.08 133.32 131.46 126.89 196.99 191.96 205.84 248.30 245.62 270.18 273.26
Adobe Inc. 53.27 54.64 54.21 54.34 53.39 51.49 49.52 45.92 42.50 37.00 32.36 28.08 23.87 21.38
Cadence Design Systems Inc. 38.63 46.58 57.84 58.34 52.92 46.26 44.21 40.38 35.68 31.50
CrowdStrike Holdings Inc. -5.09 -5.34 -6.41 -8.16 -12.40 -55.36 -151.33 -185.47 -226.03 -315.25
Fair Isaac Corp. 7.09 7.83 8.91 11.63 12.49 12.80 12.23 9.16 8.21 7.09 6.72 6.92 6.54 6.44
International Business Machines Corp. 2.25 1.95 1.59 6.01 5.40 5.19 3.79 4.56 4.97 4.60
Intuit Inc. 19.99 32.38 55.36 62.71 93.29 89.14 92.00 89.58 120.30 158.00 158.50 164.67 148.46 126.40
Oracle Corp. 3.33 3.78 3.98 4.23 6.06 6.21 6.27 6.48 6.76 7.05
Palantir Technologies Inc. -49.82 -87.97 -176.15 -201.09 -194.27 -133.20
Palo Alto Networks Inc. -1.99 -6.56 -4.28 -3.42 -2.65 -1.85 -1.68 -1.49 -1.36 -1.61 -1.55 -0.92 -0.09 0.11
Synopsys Inc.

Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Q1 2023 Calculation
Interest coverage = (EBITQ1 2023 + EBITQ4 2022 + EBITQ3 2022 + EBITQ2 2022) ÷ (Interest expenseQ1 2023 + Interest expenseQ4 2022 + Interest expenseQ3 2022 + Interest expenseQ2 2022)
= (2,985 + 3,216 + 3,192 + 2,912) ÷ (132 + 127 + 120 + 114) = 24.96

2 Click competitor name to see calculations.


Earnings before interest and tax (EBIT)
The EBIT values demonstrate an overall upward trend across the examined periods. Starting at 1,846 million USD in March 2018, the figures peaked variously with notable growth phases such as the increase from 1,262 million USD in December 2018 to 2,539 million USD in December 2019. Despite a dip in the first half of 2020, likely influenced by external factors during that year, the EBIT values recovered strongly, reaching a high of 3,216 million USD in June 2021, maintaining elevated levels thereafter. The data for 2022 shows relatively stable performance around the 2,900-3,190 million USD range, followed by a slight decrease to 2,985 million USD in March 2023.
Interest expense
The interest expense has exhibited a consistent upward trend over the periods presented. Beginning at 43 million USD in March 2018, it increased incrementally to reach 132 million USD by March 2023. Notable increments took place particularly in 2020 and onwards, where the figures rose from 69 million USD in March 2020 to over 100 million USD in subsequent quarters, reflecting either increased borrowing, changes in debt structure, or higher interest rates.
Interest coverage ratio
The interest coverage ratio, which measures the ability to meet interest obligations from operating earnings, has moderately declined over the observed quarters. Initial ratios in 2018 exceeded 39, peaking around 44.44 in December 2018; thereafter, the ratio trended downward steadily to values around 25 by the end of the dataset in March 2023. This decline signals a reduction in the margin of safety concerning interest payments, likely influenced by rising interest expenses in combination with fluctuating EBIT. Nevertheless, the ratio remains at a relatively strong level above 20, indicating continued robust coverage of interest charges.