Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Statement of Comprehensive Income
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to FCFF (EV/FCFF)
- Dividend Discount Model (DDM)
- Net Profit Margin since 2006
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- Debt to Equity since 2006
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Long-term Activity Ratios (Summary)
Mastercard Inc., long-term (investment) activity ratios (quarterly data)
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).
The analysis of the financial turnover ratios over the observed periods reveals distinct trends and insights into asset and equity utilization.
- Net Fixed Asset Turnover
- This ratio demonstrates a notable decreasing trend from early 2019 through 2020, declining from 11.69 to a low of 8.04 by the last quarter of 2020. This suggests a reduced efficiency in generating revenue from fixed assets during this period. Starting in 2021, there is a steady recovery and improvement, with the ratio increasing progressively to 11.37 by the first quarter of 2023, indicating a rebound in asset productivity and possibly improved capital management or growth in sales relative to fixed assets.
- Total Asset Turnover
- The total asset turnover ratio shows a downward trajectory from 0.65 in early 2019 to a trough of 0.44 in the first quarter of 2021, reflecting decreased efficiency in utilizing all assets to generate revenue. Post this low point, the ratio experiences a gradual improvement, rising to 0.59 by the first quarter of 2023. Despite the recovery, the ratio remains below the initial 2019 levels, indicating ongoing challenges or investments that have yet to fully translate into higher asset productivity.
- Equity Turnover
- Equity turnover fluctuates considerably across the periods. It starts at 2.95 in early 2019, peaks at 3.29 in the third quarter of 2019, and declines to a low of 2.39 by the last quarter of 2020. From 2021 onwards, the ratio shows a consistent upward trend, significantly increasing to 4.28 by the first quarter of 2023. This strong increase suggests enhanced utilization of shareholders' equity in generating sales, possibly influenced by improved profitability, capital restructuring, or higher sales volumes relative to equity.
In summary, there was a period of declining asset productivity and turnover efficiency across net fixed assets, total assets, and equity during 2019 and 2020, likely reflecting operational or market challenges. However, beginning in 2021, the trends reverse with notable recoveries, especially in net fixed asset and equity turnover, signaling improved operational efficiency and asset utilization leading into 2023.
Net Fixed Asset Turnover
Mastercard Inc., net fixed asset turnover calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net revenue | |||||||||||||||||||||||
| Property, equipment and right-of-use assets, net of accumulated depreciation and amortization | |||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Net fixed asset turnover1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | |||||||||||||||||||||||
| Adobe Inc. | |||||||||||||||||||||||
| AppLovin Corp. | |||||||||||||||||||||||
| Cadence Design Systems Inc. | |||||||||||||||||||||||
| CrowdStrike Holdings 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. | |||||||||||||||||||||||
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).
1 Q1 2023 Calculation
Net fixed asset turnover
= (Net revenueQ1 2023
+ Net revenueQ4 2022
+ Net revenueQ3 2022
+ Net revenueQ2 2022)
÷ Property, equipment and right-of-use assets, net of accumulated depreciation and amortization
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net revenue trend
- Net revenue exhibited an initial growth phase from March 2019 through December 2019, increasing steadily from 3,889 million US dollars to 4,414 million US dollars. This was followed by a decline in early 2020 coinciding with the general economic downturn, reaching a low of 3,335 million US dollars in June 2020. Subsequently, net revenue demonstrated a strong recovery and consistent upward trajectory from the third quarter of 2020 through the first quarter of 2023, peaking at 5,817 million US dollars in December 2022, before a slight dip to 5,748 million US dollars in March 2023.
- Property, equipment and right-of-use assets
- The net value of property, equipment, and right-of-use assets increased gradually over the entire period. From 1,305 million US dollars at the end of March 2019, the asset base grew steadily and reached 2,006 million US dollars by the end of March 2023. The most notable increase occurred during 2019, particularly between September and December, suggesting potentially significant capital investments or acquisitions during that time. Beyond 2019, the asset base stabilized with slight incremental changes.
- Net fixed asset turnover ratio
- The net fixed asset turnover ratio showed a downward trend during 2019 to mid-2020, declining from 11.69 to 8.04 by December 2020. This decrease reflects that net revenue growth was not keeping pace with investments in fixed assets during this period, possibly due to the dip in revenue and increased asset base. From early 2021 onwards, the turnover ratio steadily improved, rising to 11.37 by March 2023, indicating enhanced efficiency in utilizing fixed assets to generate revenue. This improvement aligns with the recovery and growth in net revenues, reflecting a more effective use of invested capital in property and equipment.
- Overall insights
- The data reflects a period of resilience and recovery following a downturn in early 2020. The company appears to have made substantial investments in property and equipment in 2019, which initially contributed to a decreased asset turnover ratio amid falling revenues during 2020. However, subsequent quarters revealed consistent revenue growth and asset usage efficiency improvements, underscoring effective management of fixed assets and solid operational performance in the later period. The slight dip in net revenue in the first quarter of 2023 may warrant monitoring but does not yet indicate a reversal of positive trends.
Total Asset Turnover
Mastercard Inc., total asset turnover calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net revenue | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Total asset turnover1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | |||||||||||||||||||||||
| Adobe Inc. | |||||||||||||||||||||||
| AppLovin Corp. | |||||||||||||||||||||||
| Cadence Design Systems Inc. | |||||||||||||||||||||||
| CrowdStrike Holdings 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. | |||||||||||||||||||||||
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).
1 Q1 2023 Calculation
Total asset turnover
= (Net revenueQ1 2023
+ Net revenueQ4 2022
+ Net revenueQ3 2022
+ Net revenueQ2 2022)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several noteworthy trends in the company's financial performance and asset management over the observed periods.
- Net Revenue
- The net revenue exhibits a general upward trend over the quarters, despite some fluctuations. Initially, net revenue increased steadily from 3,889 million US dollars in March 2019 to 4,467 million US dollars in September 2019. It then experienced a slight decline during the early phases of 2020, reaching a low of 3,335 million US dollars in June 2020, likely influenced by external economic disruptions. From that point, net revenue rebounded consistently, rising to 5,817 million US dollars by December 2022 before a minor decrease to 5,748 million US dollars in March 2023. This overall growth indicates resilience and recovery in the company’s revenue-generating capacity.
- Total Assets
- Total assets increased steadily throughout the periods observed. Starting from 23,520 million US dollars at the beginning of 2019, total assets climbed to 33,584 million US dollars by the end of 2020, and further expanded to nearly 38,936 million US dollars by March 2023. The steady asset growth implies ongoing investments or accumulation of resources, supporting business expansion or operational needs.
- Total Asset Turnover Ratio
- The total asset turnover ratio shows a declining trend from 0.65 in March 2019 to a low of 0.44 in March 2021, reflecting a decrease in the efficiency with which the company utilized its assets to generate revenue during this period. However, from mid-2021 onward, the ratio improves steadily, recovering to 0.59 by March 2023. This recovery suggests enhanced operational efficiency and better asset utilization in the recent periods, aligning with the observed increase in net revenue.
Overall, the data suggest that while the company faced a period of reduced revenue and asset efficiency particularly around 2020, it has demonstrated a strong recovery. Asset growth coupled with improved turnover ratios indicates effective management and potential growth in its core operations.
Equity Turnover
Mastercard Inc., equity turnover calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net revenue | |||||||||||||||||||||||
| Total Mastercard Incorporated stockholders’ equity | |||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Equity turnover1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | |||||||||||||||||||||||
| Adobe Inc. | |||||||||||||||||||||||
| AppLovin Corp. | |||||||||||||||||||||||
| Cadence Design Systems Inc. | |||||||||||||||||||||||
| CrowdStrike Holdings 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. | |||||||||||||||||||||||
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).
1 Q1 2023 Calculation
Equity turnover
= (Net revenueQ1 2023
+ Net revenueQ4 2022
+ Net revenueQ3 2022
+ Net revenueQ2 2022)
÷ Total Mastercard Incorporated stockholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The net revenue displays a generically positive trend despite fluctuations during the periods presented. Beginning at 3,889 million US dollars in the first quarter of 2019, it increases gradually, reaching a peak of 5,817 million by the fourth quarter of 2022. A notable dip occurs during the first half of 2020, likely influenced by external factors affecting performance, with the lowest recorded revenue being 3,335 million in the second quarter of 2020. After this trough, net revenue steadily recovers and continues to improve through to early 2023, maintaining values above 5,700 million.
Total stockholders’ equity shows greater variability across the quarters. It starts at 5,168 million US dollars in the first quarter of 2019 and generally oscillates without a consistent long-term increasing or decreasing trend. Significant peaks are visible at the end of 2019 (5,893 million) and throughout 2021 (exceeding 7,300 million at year-end), followed by declines in 2022 and early 2023, where it falls to 5,330 million. This fluctuation suggests periodic changes in retained earnings, share repurchases, dividends, or other equity-related activities influencing overall equity levels.
Equity turnover, which measures how efficiently the company is utilizing its equity to generate revenue, exhibits marked improvement over the period. Starting at a ratio of 2.95 in early 2019, it decreases slightly during the 2019-2020 period, reaching its minimum of 2.39 in the last quarter of 2020. From 2021 onwards, this ratio rises steadily, culminating at 4.28 in the first quarter of 2023. This upward trend indicates an enhanced capability to generate revenue from the stockholders’ equity base, suggesting improved operational efficiency or a shift toward a business model that leverages equity more effectively.