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 data reflects the annual reported debt figures over six consecutive years ending September 30, from 2017 to 2022. The focus is on current maturities of debt, long-term debt excluding current maturities, and total debt carrying amounts.
- Current Maturities of Debt
- The reported values for current maturities of debt show variability across the years. Beginning at 1,749 million US dollars in 2017, there is no data available for 2018 and 2019. In 2020, the figure increases notably to 2,999 million US dollars, then declines sharply to 999 million in 2021, followed by a rise to 2,250 million in 2022. This pattern suggests fluctuations in short-term obligations or the timing of debt repayments within the analyzed period.
- Long-Term Debt, Excluding Current Maturities
- Long-term debt shows a relatively stable but slightly increasing trend over the years. Starting at 16,618 million US dollars in 2017, it remains almost unchanged in 2018 and 2019 with minimal increases, reaching 16,630 and 16,729 million respectively. A significant increase occurs in 2020, rising to 21,071 million, which signals considerable long-term borrowing or refinancing activities. This level slightly decreases to 19,978 million in 2021 and then marginally increases again to 20,200 million in 2022, indicating some repayment or restructuring followed by moderate additional debt issuance.
- Total Debt (Carrying Amount)
- The total debt carrying amount reflects the sum of the components above, showing an initial value of 18,367 million US dollars in 2017. This decreases to 16,630 million in 2018 and marginally increases to 16,729 million in 2019. A marked rise is observed in 2020 at 24,070 million, corresponding with the jump in long-term debt and increased current maturities. Following this peak, total debt declines to 20,977 million in 2021 and slightly increases to 22,450 million in 2022. These variations reveal debt management strategies fluctuating in response to likely operational or market demands.
Overall, the data demonstrates a period of relative debt stability from 2017 to 2019, followed by a significant increase in 2020 across both current and long-term debt categories. Subsequent years show some reduction and then moderate increases, indicating active debt management possibly influenced by external economic conditions or company-specific financing needs. The volatility in current maturities suggests tactical management of short-term liabilities, while long-term debt presents a pattern of borrowing and repayment consistent with adjusting capital structure.
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%