Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Visa Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
Customer relationships	836)	726)	709)	701)	452)	438)
Trade names	195)	199)	199)	199)	199)	195)
Reseller relationships	95)	95)	95)	95)	95)	95)
Other	16)	16)	17)	17)	17)	17)
Finite-lived intangible assets, gross	1,142)	1,036)	1,020)	1,012)	763)	745)
Accumulated amortization	(783)	(695)	(613)	(533)	(473)	(418)
Finite-lived intangible assets, net	359)	341)	407)	479)	290)	327)
Customer relationships and reacquired rights	20,622)	23,239)	23,317)	22,217)	23,184)	23,437)
Visa trade name	4,084)	4,084)	4,084)	4,084)	4,084)	4,084)
Indefinite-lived intangible assets	24,706)	27,323)	27,401)	26,301)	27,268)	27,521)
Intangible assets	25,065)	27,664)	27,808)	26,780)	27,558)	27,848)
Goodwill	17,787)	15,958)	15,910)	15,656)	15,194)	15,110)
Intangible assets and goodwill	42,852)	43,622)	43,718)	42,436)	42,752)	42,958)

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).

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Item	Description	The company
Intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Visa Inc. intangible assets decreased from 2020 to 2021 and from 2021 to 2022.
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Visa Inc. goodwill increased from 2020 to 2021 and from 2021 to 2022.
Intangible assets and goodwill	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Visa Inc. intangible assets and goodwill decreased from 2020 to 2021 and from 2021 to 2022.

Visa Inc., adjustments to financial statements

US$ in millions

	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
Adjustment to Total Assets
Total assets (as reported)	85,501)	82,896)	80,919)	72,574)	69,225)	67,977)
Less: Goodwill	17,787)	15,958)	15,910)	15,656)	15,194)	15,110)
Total assets (adjusted)	67,714)	66,938)	65,009)	56,918)	54,031)	52,867)
Adjustment to Equity
Equity (as reported)	35,581)	37,589)	36,210)	34,684)	34,006)	32,760)
Less: Goodwill	17,787)	15,958)	15,910)	15,656)	15,194)	15,110)
Equity (adjusted)	17,794)	21,631)	20,300)	19,028)	18,812)	17,650)

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).

Visa Inc., Financial Data: Reported vs. Adjusted

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Visa Inc., adjusted financial ratios

	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
Total Asset Turnover
Reported total asset turnover	0.34	0.29	0.27	0.32	0.30	0.27
Adjusted total asset turnover	0.43	0.36	0.34	0.40	0.38	0.35
Financial Leverage
Reported financial leverage	2.40	2.21	2.23	2.09	2.04	2.08
Adjusted financial leverage	3.81	3.09	3.20	2.99	2.87	3.00
Return on Equity (ROE)
Reported ROE	42.04%	32.75%	30.01%	34.83%	30.29%	20.45%
Adjusted ROE	84.06%	56.91%	53.53%	63.49%	54.76%	37.95%
Return on Assets (ROA)
Reported ROA	17.49%	14.85%	13.43%	16.65%	14.88%	9.85%
Adjusted ROA	22.09%	18.39%	16.71%	21.22%	19.06%	12.67%

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).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Visa Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Visa Inc. adjusted financial leverage ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Visa Inc. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Visa Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

Visa Inc., Financial Ratios: Reported vs. Adjusted

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	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
As Reported
Selected Financial Data (US$ in millions)
Net revenues	29,310)	24,105)	21,846)	22,977)	20,609)	18,358)
Total assets	85,501)	82,896)	80,919)	72,574)	69,225)	67,977)
Activity Ratio
Total asset turnover¹	0.34	0.29	0.27	0.32	0.30	0.27
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net revenues	29,310)	24,105)	21,846)	22,977)	20,609)	18,358)
Adjusted total assets	67,714)	66,938)	65,009)	56,918)	54,031)	52,867)
Activity Ratio
Adjusted total asset turnover²	0.43	0.36	0.34	0.40	0.38	0.35

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).

2022 Calculations

¹ Total asset turnover = Net revenues ÷ Total assets
= 29,310 ÷ 85,501 = 0.34

² Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 29,310 ÷ 67,714 = 0.43

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Visa Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
As Reported
Selected Financial Data (US$ in millions)
Total assets	85,501)	82,896)	80,919)	72,574)	69,225)	67,977)
Equity	35,581)	37,589)	36,210)	34,684)	34,006)	32,760)
Solvency Ratio
Financial leverage¹	2.40	2.21	2.23	2.09	2.04	2.08
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	67,714)	66,938)	65,009)	56,918)	54,031)	52,867)
Adjusted equity	17,794)	21,631)	20,300)	19,028)	18,812)	17,650)
Solvency Ratio
Adjusted financial leverage²	3.81	3.09	3.20	2.99	2.87	3.00

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).

2022 Calculations

¹ Financial leverage = Total assets ÷ Equity
= 85,501 ÷ 35,581 = 2.40

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted equity
= 67,714 ÷ 17,794 = 3.81

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Visa Inc. adjusted financial leverage ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income	14,957)	12,311)	10,866)	12,080)	10,301)	6,699)
Equity	35,581)	37,589)	36,210)	34,684)	34,006)	32,760)
Profitability Ratio
ROE¹	42.04%	32.75%	30.01%	34.83%	30.29%	20.45%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	14,957)	12,311)	10,866)	12,080)	10,301)	6,699)
Adjusted equity	17,794)	21,631)	20,300)	19,028)	18,812)	17,650)
Profitability Ratio
Adjusted ROE²	84.06%	56.91%	53.53%	63.49%	54.76%	37.95%

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).

2022 Calculations

¹ ROE = 100 × Net income ÷ Equity
= 100 × 14,957 ÷ 35,581 = 42.04%

² Adjusted ROE = 100 × Net income ÷ Adjusted equity
= 100 × 14,957 ÷ 17,794 = 84.06%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Visa Inc. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.

	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income	14,957)	12,311)	10,866)	12,080)	10,301)	6,699)
Total assets	85,501)	82,896)	80,919)	72,574)	69,225)	67,977)
Profitability Ratio
ROA¹	17.49%	14.85%	13.43%	16.65%	14.88%	9.85%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	14,957)	12,311)	10,866)	12,080)	10,301)	6,699)
Adjusted total assets	67,714)	66,938)	65,009)	56,918)	54,031)	52,867)
Profitability Ratio
Adjusted ROA²	22.09%	18.39%	16.71%	21.22%	19.06%	12.67%

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).

2022 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 14,957 ÷ 85,501 = 17.49%

² Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 14,957 ÷ 67,714 = 22.09%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Visa Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

Visa Inc. (NYSE:V)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Visa Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Visa Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)