Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Mastercard Inc., profitability ratios
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
| 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
| 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
| 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
| 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. |