Stock Analysis on Net

Mastercard Inc. (NYSE:MA)

Analysis of Profitability Ratios

Microsoft Excel LibreOffice Calc

Profitability Ratios (Summary)

Mastercard Inc., profitability ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Return on Sales
Operating profit margin 52.81% 57.24% 48.71% 52.99% 53.46%
Net profit margin 41.90% 48.08% 39.19% 31.33% 37.67%
Return on Investment
Return on equity (ROE) 100.31% 137.76% 108.60% 71.60% 71.76%
Return on assets (ROA) 19.09% 27.77% 23.57% 18.36% 21.73%

Based on: 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), 10-K (reporting date: 2016-12-31).

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Mastercard Inc. operating profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Mastercard Inc. net profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Mastercard Inc. ROE improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
ROA A profitability ratio calculated as net income divided by total assets. Mastercard Inc. ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Operating Profit Margin

Mastercard Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Operating income 8,081  9,664  7,282  6,622  5,761 
Net revenue 15,301  16,883  14,950  12,497  10,776 
Profitability Ratio
Operating profit margin1 52.81% 57.24% 48.71% 52.99% 53.46%
Benchmarks
Operating Profit Margin, Competitors2
Accenture PLC 14.69% 14.59% 14.04% 12.60% 13.82%
Adobe Inc. 32.93% 29.25% 31.45% 29.69% 25.51%
Autodesk Inc. 10.48% -0.97% -24.75% -24.60% 0.05%
Automatic Data Processing Inc. 21.53% 21.34% 18.85% 18.80% 18.77%
Fidelity National Information Services Inc. 4.40% 9.38% 17.31% 16.35% 14.05%
Fiserv Inc. 12.47% 15.79% 30.10% 26.90% 26.25%
International Business Machines Corp. 9.22% 13.67% 16.61% 14.91% 16.40%
Intuit Inc. 28.34% 27.33% 25.10% 26.95% 26.46%
Microsoft Corp. 37.03% 34.14% 31.77% 24.82% 23.65%
Oracle Corp. 35.57% 34.26% 34.34% 33.69% 34.02%
PayPal Holdings Inc. 15.33% 15.30% 14.20% 16.24% 14.63%
salesforce.com inc. 1.74% 4.03% 2.25% 0.77% 1.72%
ServiceNow Inc. 4.40% 1.22% -1.63% -5.25% -30.41%
Visa Inc. 64.46% 65.29% 62.86% 66.15% 52.27%
Operating Profit Margin, Sector
Software & Services 26.54% 26.97% 26.30% 23.78% 22.81%
Operating Profit Margin, Industry
Information Technology 25.78% 26.62% 27.30% 24.93% 23.63%

Based on: 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), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Operating profit margin = 100 × Operating income ÷ Net revenue
= 100 × 8,081 ÷ 15,301 = 52.81%

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 improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

Net Profit Margin

Mastercard Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income 6,411  8,118  5,859  3,915  4,059 
Net revenue 15,301  16,883  14,950  12,497  10,776 
Profitability Ratio
Net profit margin1 41.90% 48.08% 39.19% 31.33% 37.67%
Benchmarks
Net Profit Margin, Competitors2
Accenture PLC 11.52% 11.06% 9.76% 9.37% 11.82%
Adobe Inc. 40.88% 26.42% 28.69% 23.20% 19.96%
Autodesk Inc. 6.55% -3.14% -27.56% -28.66% -13.20%
Automatic Data Processing Inc. 16.91% 16.17% 12.16% 14.00% 12.79%
Fidelity National Information Services Inc. 1.26% 2.88% 10.04% 14.46% 6.15%
Fiserv Inc. 6.45% 8.77% 20.38% 21.88% 16.89%
International Business Machines Corp. 7.59% 12.22% 10.97% 7.27% 14.86%
Intuit Inc. 23.78% 22.95% 20.31% 18.76% 20.86%
Microsoft Corp. 30.96% 31.18% 15.02% 23.57% 19.69%
Oracle Corp. 25.94% 28.05% 9.60% 24.74% 24.03%
PayPal Holdings Inc. 19.59% 13.84% 13.31% 13.71% 12.92%
salesforce.com inc. 0.74% 8.36% 1.22% 2.14% -0.71%
ServiceNow Inc. 2.62% 18.11% -1.02% -7.71% -32.49%
Visa Inc. 49.74% 52.57% 49.98% 36.49% 39.72%
Net Profit Margin, Sector
Software & Services 21.91% 23.32% 15.36% 17.24% 17.88%
Net Profit Margin, Industry
Information Technology 21.95% 22.94% 19.47% 18.48% 18.28%

Based on: 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), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Net profit margin = 100 × Net income ÷ Net revenue
= 100 × 6,411 ÷ 15,301 = 41.90%

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 improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

Return on Equity (ROE)

Mastercard Inc., ROE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income 6,411  8,118  5,859  3,915  4,059 
Total Mastercard Incorporated stockholders’ equity 6,391  5,893  5,395  5,468  5,656 
Profitability Ratio
ROE1 100.31% 137.76% 108.60% 71.60% 71.76%
Benchmarks
ROE, Competitors2
Accenture PLC 30.05% 33.17% 39.17% 38.50% 54.42%
Adobe Inc. 39.66% 28.03% 27.67% 20.02% 15.74%
Autodesk Inc. -79.35% -20.41%
Automatic Data Processing Inc. 42.88% 42.46% 46.85% 43.59% 33.30%
Fidelity National Information Services Inc. 0.32% 0.60% 8.28% 12.17% 5.83%
Fiserv Inc. 2.96% 2.71% 51.77% 45.62% 36.60%
International Business Machines Corp. 27.14% 45.25% 51.96% 32.70% 65.07%
Intuit Inc. 35.76% 41.53% 51.44% 71.71% 84.32%
Microsoft Corp. 37.43% 38.35% 20.03% 29.29% 23.33%
Oracle Corp. 83.94% 50.87% 8.37% 17.33% 18.82%
PayPal Holdings Inc. 20.99% 14.56% 13.37% 11.22% 9.52%
salesforce.com inc. 0.37% 7.11% 1.36% 2.40% -0.95%
ServiceNow Inc. 4.18% 29.45% -2.40% -25.53% -116.76%
Visa Inc. 30.01% 34.83% 30.29% 20.45% 18.20%
ROE, Sector
Software & Services 26.20% 28.78% 23.51% 24.08% 24.90%
ROE, Industry
Information Technology 32.11% 33.34% 31.07% 23.72% 23.14%

Based on: 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), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
ROE = 100 × Net income ÷ Total Mastercard Incorporated stockholders’ equity
= 100 × 6,411 ÷ 6,391 = 100.31%

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 improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Return on Assets (ROA)

Mastercard Inc., ROA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income 6,411  8,118  5,859  3,915  4,059 
Total assets 33,584  29,236  24,860  21,329  18,675 
Profitability Ratio
ROA1 19.09% 27.77% 23.57% 18.36% 21.73%
Benchmarks
ROA, Competitors2
Accenture PLC 13.78% 16.04% 16.61% 15.18% 19.95%
Adobe Inc. 21.66% 14.22% 13.80% 11.65% 9.20%
Autodesk Inc. 3.47% -1.71% -13.78% -12.13% -5.99%
Automatic Data Processing Inc. 6.30% 5.47% 4.37% 4.66% 3.42%
Fidelity National Information Services Inc. 0.19% 0.36% 3.56% 5.38% 2.18%
Fiserv Inc. 1.28% 1.15% 10.54% 12.11% 9.55%
International Business Machines Corp. 3.58% 6.20% 7.07% 4.59% 10.11%
Intuit Inc. 16.70% 24.78% 23.39% 23.87% 23.04%
Microsoft Corp. 14.70% 13.69% 6.40% 8.80% 8.67%
Oracle Corp. 8.78% 10.20% 2.79% 6.92% 7.93%
PayPal Holdings Inc. 5.97% 4.79% 4.75% 4.40% 4.23%
salesforce.com inc. 0.23% 3.61% 0.61% 1.02% -0.37%
ServiceNow Inc. 1.36% 10.41% -0.69% -4.39% -22.22%
Visa Inc. 13.43% 16.65% 14.88% 9.85% 9.36%
ROA, Sector
Software & Services 8.90% 9.66% 7.24% 7.60% 8.49%
ROA, Industry
Information Technology 11.21% 11.86% 10.97% 9.02% 9.47%

Based on: 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), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 6,411 ÷ 33,584 = 19.09%

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 improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.