Analysis of Debt
Total Debt (Carrying Amount)
Visa Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).
The debt profile exhibits a period of relative stability from 2017 through 2019, followed by a significant expansion in total leverage that peaked in 2020. While debt levels corrected in 2021, they remained elevated compared to pre-2020 baselines, closing the period with a moderate upward trajectory in 2022.
- Long-term Debt Dynamics
- Long-term obligations, excluding current maturities, remained remarkably stagnant between 2017 and 2019, fluctuating minimally between 16.618 billion and 16.729 billion US dollars. A sharp increase is observed in 2020, where long-term debt rose to 21.071 billion US dollars. Despite a slight contraction to 19.978 billion US dollars in 2021, the balance increased again to 20.200 billion US dollars by September 30, 2022, indicating a permanent step-up in the long-term borrowing baseline.
- Current Maturities and Short-term Obligations
- Short-term debt obligations demonstrate significant volatility over the analyzed period. Current maturities peaked at 2.999 billion US dollars in 2020, coinciding with the overall increase in total debt. This was followed by a substantial decrease to 999 million US dollars in 2021, before rising back to 2.250 billion US dollars in 2022. These fluctuations suggest varying cycles of debt maturity and refinancing activities.
- Total Debt Carrying Amount Analysis
- Total debt experienced a downward trend from 2017 to 2018, moving from 18.367 billion to 16.630 billion US dollars, and remained nearly flat through 2019. A critical inflection point occurred in 2020, with total debt surging to 24.070 billion US dollars, representing the highest leverage point in the six-year period. The subsequent decline to 20.977 billion US dollars in 2021 and the moderate increase to 22.450 billion US dollars in 2022 reflect a stabilized but higher overall debt burden compared to the 2017-2019 era.
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Total Debt (Fair Value)
| Sep 30, 2022 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Total debt (fair value) | 19,900) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.89 |
Based on: 10-K (reporting date: 2022-09-30).
Weighted-average Interest Rate on Debt
Weighted-average effective interest rate on debt: 2.90%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 2.89% | 2,250) | 65) | |
| 3.26% | 4,000) | 130) | |
| 2.02% | 1,500) | 30) | |
| 0.84% | 500) | 4) | |
| 2.91% | 750) | 22) | |
| 2.13% | 1,500) | 32) | |
| 1.20% | 1,000) | 12) | |
| 4.23% | 1,500) | 63) | |
| 2.80% | 1,000) | 28) | |
| 4.37% | 3,500) | 153) | |
| 3.73% | 750) | 28) | |
| 2.09% | 1,750) | 37) | |
| 1.71% | 1,325) | 23) | |
| 2.13% | 982) | 21) | |
| 2.53% | 638) | 16) | |
| Total | 22,945) | 664) | |
| 2.90% | |||
Based on: 10-K (reporting date: 2022-09-30).
1 US$ in millions
2 Weighted-average interest rate = 100 × 664 ÷ 22,945 = 2.90%