Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Mastercard Inc., short-term (operating) activity 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Mastercard Inc. receivables turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Mastercard Inc. payables turnover ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Mastercard Inc. working capital turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Mastercard Inc. number of days of receivables outstanding improved from 2020 to 2021 and from 2021 to 2022. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |
Receivables Turnover
Mastercard Inc., receivables turnover 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 revenue | 22,237) | 18,884) | 15,301) | 16,883) | 14,950) | |
| Settlement assets | 1,270) | 1,319) | 1,706) | 2,995) | 2,452) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 17.51 | 14.32 | 8.97 | 5.64 | 6.10 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Accenture PLC | 5.87 | 5.74 | 6.16 | 5.79 | 8.33 | |
| Adobe Inc. | 8.53 | 8.41 | 9.20 | 7.28 | 6.86 | |
| International Business Machines Corp. | 9.25 | 8.49 | 10.32 | 9.80 | — | |
| Intuit Inc. | 28.53 | 24.64 | 51.54 | 77.98 | 60.86 | |
| Microsoft Corp. | 4.48 | 4.42 | 4.47 | 4.26 | 4.17 | |
| Oracle Corp. | 7.13 | 7.48 | 7.04 | 7.69 | 7.55 | |
| Palo Alto Networks Inc. | 2.57 | 3.43 | 3.29 | 4.98 | 4.86 | |
| Salesforce Inc. | 2.72 | 2.73 | 2.77 | 2.70 | — | |
| ServiceNow Inc. | 4.20 | 4.24 | 4.48 | 4.14 | — | |
| Synopsys Inc. | 6.38 | 7.40 | 4.72 | 6.07 | 5.63 | |
| Receivables Turnover, Sector | ||||||
| Software & Services | 5.20 | 5.22 | 5.59 | 5.58 | — | |
| Receivables Turnover, Industry | ||||||
| Information Technology | 7.44 | 7.57 | 8.02 | 7.60 | — | |
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
Receivables turnover = Net revenue ÷ Settlement assets
= 22,237 ÷ 1,270 = 17.51
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Mastercard Inc. receivables turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
Payables Turnover
Mastercard Inc., payables turnover 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 revenue | 22,237) | 18,884) | 15,301) | 16,883) | 14,950) | |
| Settlement obligations | 1,111) | 913) | 1,475) | 2,714) | 2,189) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 20.02 | 20.68 | 10.37 | 6.22 | 6.83 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Accenture PLC | 16.37 | 15.03 | 22.48 | 18.16 | 21.62 | |
| Adobe Inc. | 5.71 | 5.98 | 5.63 | 7.98 | 6.42 | |
| International Business Machines Corp. | 6.87 | 6.54 | 7.75 | 8.30 | — | |
| Intuit Inc. | 3.26 | 2.70 | 4.52 | 4.26 | 5.49 | |
| Microsoft Corp. | 3.30 | 3.44 | 3.68 | 4.57 | 4.45 | |
| Oracle Corp. | 6.74 | 10.54 | 12.46 | 13.78 | 15.28 | |
| Palo Alto Networks Inc. | 13.43 | 22.41 | 15.72 | 11.03 | 13.06 | |
| Salesforce Inc. | — | — | — | — | — | |
| ServiceNow Inc. | 5.74 | 15.20 | 28.83 | 15.04 | — | |
| Synopsys Inc. | 28.30 | 31.44 | 26.49 | 38.00 | 8.65 | |
| Payables Turnover, Sector | ||||||
| Software & Services | 5.52 | 5.70 | 6.57 | 7.59 | — | |
| Payables Turnover, Industry | ||||||
| Information Technology | 4.53 | 4.99 | 5.34 | 5.26 | — | |
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
Payables turnover = Net revenue ÷ Settlement obligations
= 22,237 ÷ 1,111 = 20.02
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Mastercard Inc. payables turnover ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022. |
Working Capital Turnover
Mastercard Inc., working capital turnover 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) | ||||||
| Current assets | 16,606) | 16,949) | 19,113) | 16,902) | 16,171) | |
| Less: Current liabilities | 14,171) | 13,162) | 11,847) | 11,904) | 11,593) | |
| Working capital | 2,435) | 3,787) | 7,266) | 4,998) | 4,578) | |
| Net revenue | 22,237) | 18,884) | 15,301) | 16,883) | 14,950) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 9.13 | 4.99 | 2.11 | 3.38 | 3.27 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Accenture PLC | 15.07 | 12.77 | 8.71 | 9.85 | 12.12 | |
| Adobe Inc. | 20.28 | 9.09 | 4.89 | — | 16.24 | |
| International Business Machines Corp. | — | — | — | 107.30 | — | |
| Intuit Inc. | 8.98 | 3.85 | 1.73 | 4.17 | 20.71 | |
| Microsoft Corp. | 2.66 | 1.76 | 1.30 | 1.19 | 0.99 | |
| Oracle Corp. | 3.50 | 1.29 | 1.12 | 1.42 | 0.70 | |
| Palo Alto Networks Inc. | — | — | 1.40 | 1.80 | 1.14 | |
| Salesforce Inc. | 24.95 | 5.11 | 15.29 | — | — | |
| ServiceNow Inc. | 11.16 | 21.76 | 5.76 | 46.69 | — | |
| Synopsys Inc. | 21.34 | 10.65 | 9.00 | — | — | |
| Working Capital Turnover, Sector | ||||||
| Software & Services | 4.82 | 2.78 | 2.17 | 2.33 | — | |
| Working Capital Turnover, Industry | ||||||
| Information Technology | 5.68 | 3.87 | 2.86 | 3.06 | — | |
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
Working capital turnover = Net revenue ÷ Working capital
= 22,237 ÷ 2,435 = 9.13
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Mastercard Inc. working capital turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
Average Receivable Collection Period
Mastercard Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 17.51 | 14.32 | 8.97 | 5.64 | 6.10 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 21 | 25 | 41 | 65 | 60 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Accenture PLC | 62 | 64 | 59 | 63 | 44 | |
| Adobe Inc. | 43 | 43 | 40 | 50 | 53 | |
| International Business Machines Corp. | 39 | 43 | 35 | 37 | — | |
| Intuit Inc. | 13 | 15 | 7 | 5 | 6 | |
| Microsoft Corp. | 81 | 83 | 82 | 86 | 88 | |
| Oracle Corp. | 51 | 49 | 52 | 47 | 48 | |
| Palo Alto Networks Inc. | 142 | 106 | 111 | 73 | 75 | |
| Salesforce Inc. | 134 | 134 | 132 | 135 | — | |
| ServiceNow Inc. | 87 | 86 | 82 | 88 | — | |
| Synopsys Inc. | 57 | 49 | 77 | 60 | 65 | |
| Average Receivable Collection Period, Sector | ||||||
| Software & Services | 70 | 70 | 65 | 65 | — | |
| Average Receivable Collection Period, Industry | ||||||
| Information Technology | 49 | 48 | 46 | 48 | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 17.51 = 21
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Mastercard Inc. number of days of receivables outstanding improved from 2020 to 2021 and from 2021 to 2022. |
Average Payables Payment Period
Mastercard Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 20.02 | 20.68 | 10.37 | 6.22 | 6.83 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 18 | 18 | 35 | 59 | 53 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Accenture PLC | 22 | 24 | 16 | 20 | 17 | |
| Adobe Inc. | 64 | 61 | 65 | 46 | 57 | |
| International Business Machines Corp. | 53 | 56 | 47 | 44 | — | |
| Intuit Inc. | 112 | 135 | 81 | 86 | 66 | |
| Microsoft Corp. | 111 | 106 | 99 | 80 | 82 | |
| Oracle Corp. | 54 | 35 | 29 | 26 | 24 | |
| Palo Alto Networks Inc. | 27 | 16 | 23 | 33 | 28 | |
| Salesforce Inc. | — | — | — | — | — | |
| ServiceNow Inc. | 64 | 24 | 13 | 24 | — | |
| Synopsys Inc. | 13 | 12 | 14 | 10 | 42 | |
| Average Payables Payment Period, Sector | ||||||
| Software & Services | 66 | 64 | 56 | 48 | — | |
| Average Payables Payment Period, Industry | ||||||
| Information Technology | 81 | 73 | 68 | 69 | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 20.02 = 18
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |