Stock Analysis on Net

Mastercard Inc. (NYSE:MA)

Analysis of Profitability Ratios 

Microsoft Excel

Profitability Ratios (Summary)

Mastercard Inc., profitability ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Return on Sales
Operating profit margin 53.39% 52.81% 57.24% 48.71% 52.99%
Net profit margin 46.00% 41.90% 48.08% 39.19% 31.33%
Return on Investment
Return on equity (ROE) 118.80% 100.31% 137.76% 108.60% 71.60%
Return on assets (ROA) 23.06% 19.09% 27.77% 23.57% 18.36%

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).

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Mastercard Inc. operating profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Mastercard Inc. net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Mastercard Inc. ROE deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
ROA A profitability ratio calculated as net income divided by total assets. Mastercard Inc. ROA deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Operating Profit Margin

Mastercard Inc., operating profit margin 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)
Operating income 10,082  8,081  9,664  7,282  6,622 
Net revenue 18,884  15,301  16,883  14,950  12,497 
Profitability Ratio
Operating profit margin1 53.39% 52.81% 57.24% 48.71% 52.99%
Benchmarks
Operating Profit Margin, Competitors2
Accenture PLC 15.08% 14.69% 14.59% 14.04% 12.60%
Adobe Inc. 36.76% 32.93% 29.25% 31.45% 29.69%
International Business Machines Corp. 11.97% 9.22% 13.67% 16.61% 14.91%
Intuit Inc. 25.95% 28.34% 27.33% 25.10% 26.95%
Microsoft Corp. 41.59% 37.03% 34.14% 31.77% 24.82%
Oracle Corp. 37.58% 35.57% 34.26% 34.34% 33.69%
PayPal Holdings Inc. 16.80% 15.33% 15.30% 14.20% 16.24%
Salesforce Inc. 2.14% 1.74% 4.03% 2.25% 0.77%
ServiceNow Inc. 4.36% 4.40% 1.22% -1.63% -5.25%
Visa Inc. 65.56% 64.46% 65.29% 62.86% 66.15%
Operating Profit Margin, Sector
Software & Services 31.73% 28.07% 28.15% 27.04% 24.45%
Operating Profit Margin, Industry
Information Technology 29.82% 26.10% 26.79% 27.57% 25.08%

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
Operating profit margin = 100 × Operating income ÷ Net revenue
= 100 × 10,082 ÷ 18,884 = 53.39%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Mastercard Inc. operating profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Net Profit Margin

Mastercard Inc., net profit margin 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)
Net income 8,687  6,411  8,118  5,859  3,915 
Net revenue 18,884  15,301  16,883  14,950  12,497 
Profitability Ratio
Net profit margin1 46.00% 41.90% 48.08% 39.19% 31.33%
Benchmarks
Net Profit Margin, Competitors2
Accenture PLC 11.69% 11.52% 11.06% 9.76% 9.37%
Adobe Inc. 30.55% 40.88% 26.42% 28.69% 23.20%
International Business Machines Corp. 10.01% 7.59% 12.22% 10.97% 7.27%
Intuit Inc. 21.41% 23.78% 22.95% 20.31% 18.76%
Microsoft Corp. 36.45% 30.96% 31.18% 15.02% 23.57%
Oracle Corp. 33.96% 25.94% 28.05% 9.60% 24.74%
PayPal Holdings Inc. 16.43% 19.59% 13.84% 13.31% 13.71%
Salesforce Inc. 19.16% 0.74% 8.36% 1.22% 2.14%
ServiceNow Inc. 3.90% 2.62% 18.11% -1.02% -7.71%
Visa Inc. 51.07% 49.74% 52.57% 49.98% 36.49%
Net Profit Margin, Sector
Software & Services 28.13% 23.43% 24.72% 15.78% 17.67%
Net Profit Margin, Industry
Information Technology 26.34% 22.29% 23.19% 19.78% 18.69%

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
Net profit margin = 100 × Net income ÷ Net revenue
= 100 × 8,687 ÷ 18,884 = 46.00%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Mastercard Inc. net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Return on Equity (ROE)

Mastercard Inc., ROE 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)
Net income 8,687  6,411  8,118  5,859  3,915 
Total Mastercard Incorporated stockholders’ equity 7,312  6,391  5,893  5,395  5,468 
Profitability Ratio
ROE1 118.80% 100.31% 137.76% 108.60% 71.60%
Benchmarks
ROE, Competitors2
Accenture PLC 30.25% 30.05% 33.17% 39.17% 38.50%
Adobe Inc. 32.59% 39.66% 28.03% 27.67% 20.02%
International Business Machines Corp. 30.38% 27.14% 45.25% 51.96% 32.70%
Intuit Inc. 20.89% 35.76% 41.53% 51.44% 71.71%
Microsoft Corp. 43.15% 37.43% 38.35% 20.03% 29.29%
Oracle Corp. 262.43% 83.94% 50.87% 8.37% 17.33%
PayPal Holdings Inc. 19.19% 20.99% 14.56% 13.37% 11.22%
Salesforce Inc. 9.81% 0.37% 7.11% 1.36% 2.40%
ServiceNow Inc. 6.22% 4.18% 29.45% -2.40% -25.53%
Visa Inc. 32.75% 30.01% 34.83% 30.29% 20.45%
ROE, Sector
Software & Services 38.19% 32.88% 37.55% 23.78% 24.38%
ROE, Industry
Information Technology 42.37% 35.05% 36.73% 30.80% 23.41%

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
ROE = 100 × Net income ÷ Total Mastercard Incorporated stockholders’ equity
= 100 × 8,687 ÷ 7,312 = 118.80%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Mastercard Inc. ROE deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Return on Assets (ROA)

Mastercard Inc., ROA 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)
Net income 8,687  6,411  8,118  5,859  3,915 
Total assets 37,669  33,584  29,236  24,860  21,329 
Profitability Ratio
ROA1 23.06% 19.09% 27.77% 23.57% 18.36%
Benchmarks
ROA, Competitors2
Accenture PLC 13.68% 13.78% 16.04% 16.61% 15.18%
Adobe Inc. 17.70% 21.66% 14.22% 13.80% 11.65%
International Business Machines Corp. 4.35% 3.58% 6.20% 7.07% 4.59%
Intuit Inc. 13.29% 16.70% 24.78% 23.39% 23.87%
Microsoft Corp. 18.36% 14.70% 13.69% 6.40% 8.80%
Oracle Corp. 10.48% 8.78% 10.20% 2.79% 6.92%
PayPal Holdings Inc. 5.50% 5.97% 4.79% 4.75% 4.40%
Salesforce Inc. 6.14% 0.23% 3.61% 0.61% 1.02%
ServiceNow Inc. 2.13% 1.36% 10.41% -0.69% -4.39%
Visa Inc. 14.85% 13.43% 16.65% 14.88% 9.85%
ROA, Sector
Software & Services 12.86% 10.51% 11.76% 7.57% 7.90%
ROA, Industry
Information Technology 15.42% 12.05% 12.91% 11.23% 9.16%

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
ROA = 100 × Net income ÷ Total assets
= 100 × 8,687 ÷ 37,669 = 23.06%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Mastercard Inc. ROA deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.