Name: Visa Inc. (NYSE:V) | Common-Size Income Statement
Creator: Stock Analysis on Net

Common-Size Income Statement

Visa Inc., common-size consolidated income statement

12 months ended:	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
Net revenues	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%
Personnel	-17.02%	-17.59%	-17.33%	-14.99%	-15.38%	-14.32%
Marketing	-4.56%	-4.71%	-4.44%	-4.81%	-4.79%	-5.02%
Network and processing	-2.53%	-3.03%	-3.33%	-3.14%	-3.33%	-3.38%
Professional fees	-1.72%	-1.67%	-1.87%	-1.98%	-2.16%	-2.23%
Depreciation and amortization	-2.94%	-3.34%	-3.51%	-2.86%	-2.97%	-3.03%
General and administrative	-4.07%	-4.09%	-5.02%	-5.21%	-5.56%	-5.77%
Litigation provision	-2.96%	-0.01%	-0.05%	-1.74%	-2.95%	-0.10%
Operating expenses	-35.81%	-34.44%	-35.54%	-34.71%	-37.14%	-33.85%
Operating income	64.19%	65.56%	64.46%	65.29%	62.86%	66.15%
Interest expense	-1.84%	-2.13%	-2.36%	-2.32%	-2.97%	-3.07%
Investment income (expense)	-0.77%	3.03%	0.92%	1.67%	2.28%	0.57%
Other	0.30%	0.17%	0.11%	0.14%	-0.03%	0.04%
Investment income (expense) and other	-0.47%	3.20%	1.03%	1.81%	2.25%	0.62%
Non-operating income (expense)	-2.31%	1.07%	-1.33%	-0.51%	-0.72%	-2.45%
Income before income taxes	61.88%	66.64%	63.12%	64.78%	62.14%	63.70%
Income tax provision	-10.85%	-15.57%	-13.38%	-12.20%	-12.15%	-27.21%
Net income	51.03%	51.07%	49.74%	52.57%	49.98%	36.49%

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 financial performance from 2017 to 2022 is characterized by exceptionally high and stable operating margins, alongside a significant expansion in net profit margins. While operating expenses have remained relatively consistent as a percentage of net revenues, the bottom-line growth was primarily driven by a substantial reduction in the effective tax rate starting in 2018.

Operating Expense Trends: Total operating expenses fluctuated between 33.85% and 37.14% of net revenues. Personnel costs represent the most significant expense category and have shown a gradual upward trend, increasing from 14.32% in 2017 to 17.02% in 2022. Conversely, general and administrative expenses improved from 5.77% to 4.07% over the same period, suggesting gains in administrative efficiency. Network and processing costs also declined steadily from 3.38% to 2.53%, indicating scalable infrastructure.
Operating Profitability and Volatility: Operating income has remained remarkably resilient, consistently staying within the 62% to 66% range. The primary source of volatility within the operating segment is the litigation provision, which exhibited sporadic spikes—most notably in 2018 (2.95%) and 2022 (2.96%)—while remaining negligible in other years. Despite these fluctuations, the core operational efficiency remains high.
Non-Operating Financial Dynamics: Interest expense as a percentage of net revenues decreased from 3.07% in 2017 to 1.84% in 2022, reflecting a reduced relative cost of debt. Investment income proved volatile, peaking at 3.03% in 2021 before turning negative at -0.77% in 2022, which impacted the non-operating income trend in the final year of the analysis.
Net Income and Tax Impact: A pivot in net profitability is observed between 2017 and 2018. Net income rose from 36.49% to 49.98% and remained above 49% through 2022. This expansion is directly attributable to the income tax provision, which dropped sharply from 27.21% of net revenues in 2017 to a range of 10.85% to 15.57% in subsequent years. This reduction in the tax burden was the primary catalyst for the sustained increase in net profit margins.

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