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: 2022-12-31), 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).
| 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 2020 to 2021 and from 2021 to 2022. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Mastercard Inc. net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Mastercard Inc. ROE improved from 2020 to 2021 and from 2021 to 2022. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Mastercard Inc. ROA improved from 2020 to 2021 and from 2021 to 2022. |
Operating Profit Margin
Mastercard Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | 12,264) | 10,082) | 8,081) | 9,664) | 7,282) | |
| Net revenue | 22,237) | 18,884) | 15,301) | 16,883) | 14,950) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 55.15% | 53.39% | 52.81% | 57.24% | 48.71% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Accenture PLC | 15.21% | 15.08% | 14.69% | 14.59% | 14.04% | |
| Adobe Inc. | 34.64% | 36.76% | 32.93% | 29.25% | 31.45% | |
| International Business Machines Corp. | 13.50% | 11.97% | 9.22% | 13.67% | — | |
| Intuit Inc. | 20.20% | 25.95% | 28.34% | 27.33% | 25.10% | |
| Microsoft Corp. | 42.06% | 41.59% | 37.03% | 34.14% | 31.77% | |
| Oracle Corp. | 25.74% | 37.58% | 35.57% | 34.26% | 34.34% | |
| Palo Alto Networks Inc. | -3.43% | -7.15% | -5.25% | -1.87% | -5.68% | |
| Salesforce Inc. | 2.07% | 2.14% | 1.74% | 4.03% | — | |
| ServiceNow Inc. | 4.90% | 4.36% | 4.40% | 1.22% | — | |
| Synopsys Inc. | 22.87% | 17.48% | 16.83% | 15.48% | 11.54% | |
| Operating Profit Margin, Sector | ||||||
| Software & Services | 27.98% | 28.89% | 25.05% | 24.34% | — | |
| Operating Profit Margin, Industry | ||||||
| Information Technology | 28.47% | 28.76% | 24.95% | 25.42% | — | |
Based on: 10-K (reporting date: 2022-12-31), 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).
1 2022 Calculation
Operating profit margin = 100 × Operating income ÷ Net revenue
= 100 × 12,264 ÷ 22,237 = 55.15%
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 2020 to 2021 and from 2021 to 2022. |
Net Profit Margin
Mastercard Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 9,930) | 8,687) | 6,411) | 8,118) | 5,859) | |
| Net revenue | 22,237) | 18,884) | 15,301) | 16,883) | 14,950) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 44.66% | 46.00% | 41.90% | 48.08% | 39.19% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Accenture PLC | 11.17% | 11.69% | 11.52% | 11.06% | 9.76% | |
| Adobe Inc. | 27.01% | 30.55% | 40.88% | 26.42% | 28.69% | |
| International Business Machines Corp. | 2.71% | 10.01% | 7.59% | 12.22% | — | |
| Intuit Inc. | 16.23% | 21.41% | 23.78% | 22.95% | 20.31% | |
| Microsoft Corp. | 36.69% | 36.45% | 30.96% | 31.18% | 15.02% | |
| Oracle Corp. | 15.83% | 33.96% | 25.94% | 28.05% | 9.60% | |
| Palo Alto Networks Inc. | -4.85% | -11.72% | -7.83% | -2.82% | -6.51% | |
| Salesforce Inc. | 5.45% | 19.16% | 0.74% | 8.36% | — | |
| ServiceNow Inc. | 4.49% | 3.90% | 2.62% | 18.11% | — | |
| Synopsys Inc. | 19.38% | 18.02% | 18.03% | 15.84% | 13.86% | |
| Net Profit Margin, Sector | ||||||
| Software & Services | 22.24% | 25.99% | 20.85% | 21.80% | — | |
| Net Profit Margin, Industry | ||||||
| Information Technology | 24.07% | 25.56% | 21.38% | 22.17% | — | |
Based on: 10-K (reporting date: 2022-12-31), 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).
1 2022 Calculation
Net profit margin = 100 × Net income ÷ Net revenue
= 100 × 9,930 ÷ 22,237 = 44.66%
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 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Return on Equity (ROE)
Mastercard Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 9,930) | 8,687) | 6,411) | 8,118) | 5,859) | |
| Total Mastercard Incorporated stockholders’ equity | 6,298) | 7,312) | 6,391) | 5,893) | 5,395) | |
| Profitability Ratio | ||||||
| ROE1 | 157.67% | 118.80% | 100.31% | 137.76% | 108.60% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Accenture PLC | 31.11% | 30.25% | 30.05% | 33.17% | 39.17% | |
| Adobe Inc. | 33.85% | 32.59% | 39.66% | 28.03% | 27.67% | |
| International Business Machines Corp. | 7.47% | 30.38% | 27.14% | 45.25% | — | |
| Intuit Inc. | 12.57% | 20.89% | 35.76% | 41.53% | 51.44% | |
| Microsoft Corp. | 43.68% | 43.15% | 37.43% | 38.35% | 20.03% | |
| Oracle Corp. | — | 262.43% | 83.94% | 50.87% | 8.37% | |
| Palo Alto Networks Inc. | -127.14% | -78.63% | -24.23% | -5.16% | -15.30% | |
| Salesforce Inc. | 2.48% | 9.81% | 0.37% | 7.11% | — | |
| ServiceNow Inc. | 6.46% | 6.22% | 4.18% | 29.45% | — | |
| Synopsys Inc. | 17.85% | 14.31% | 13.54% | 13.04% | 12.43% | |
| ROE, Sector | ||||||
| Software & Services | 32.03% | 37.53% | 31.80% | 36.15% | — | |
| ROE, Industry | ||||||
| Information Technology | 38.69% | 42.56% | 35.29% | 36.68% | — | |
Based on: 10-K (reporting date: 2022-12-31), 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).
1 2022 Calculation
ROE = 100 × Net income ÷ Total Mastercard Incorporated stockholders’ equity
= 100 × 9,930 ÷ 6,298 = 157.67%
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 2020 to 2021 and from 2021 to 2022. |
Return on Assets (ROA)
Mastercard Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 9,930) | 8,687) | 6,411) | 8,118) | 5,859) | |
| Total assets | 38,724) | 37,669) | 33,584) | 29,236) | 24,860) | |
| Profitability Ratio | ||||||
| ROA1 | 25.64% | 23.06% | 19.09% | 27.77% | 23.57% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Accenture PLC | 14.55% | 13.68% | 13.78% | 16.04% | 16.61% | |
| Adobe Inc. | 17.51% | 17.70% | 21.66% | 14.22% | 13.80% | |
| International Business Machines Corp. | 1.29% | 4.35% | 3.58% | 6.20% | — | |
| Intuit Inc. | 7.45% | 13.29% | 16.70% | 24.78% | 23.39% | |
| Microsoft Corp. | 19.94% | 18.36% | 14.70% | 13.69% | 6.40% | |
| Oracle Corp. | 6.15% | 10.48% | 8.78% | 10.20% | 2.79% | |
| Palo Alto Networks Inc. | -2.18% | -4.87% | -2.95% | -1.24% | -2.54% | |
| Salesforce Inc. | 1.52% | 6.14% | 0.23% | 3.61% | — | |
| ServiceNow Inc. | 2.44% | 2.13% | 1.36% | 10.41% | — | |
| Synopsys Inc. | 10.45% | 8.66% | 8.27% | 8.31% | 7.04% | |
| ROA, Sector | ||||||
| Software & Services | 11.67% | 12.60% | 10.03% | 10.89% | — | |
| ROA, Industry | ||||||
| Information Technology | 15.14% | 15.65% | 12.15% | 12.80% | — | |
Based on: 10-K (reporting date: 2022-12-31), 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).
1 2022 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 9,930 ÷ 38,724 = 25.64%
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 2020 to 2021 and from 2021 to 2022. |