Stock Analysis on Net
Stock Analysis on Net

Visa Inc. (NYSE:V)

This company has been moved to the archive! The financial data has not been updated since April 27, 2023.

Common-Size Income Statement 

Visa Inc., common-size consolidated income statement

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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).

Personnel Costs
Personnel expenses as a percentage of net revenues increased from -14.32% in 2017 to a peak of -17.59% in 2021, followed by a slight decrease to -17.02% in 2022, indicating a general upward trend in personnel-related expenditures relative to revenues.
Marketing Expenses
Marketing costs remained relatively stable, fluctuating narrowly between -5.02% and -4.44%, with the lowest level observed in 2020. The share of marketing expenses decreased modestly over the period, suggesting controlled spending in this area.
Network and Processing Costs
This category exhibited a downward trend, declining from -3.38% in 2017 to -2.53% in 2022, indicating improved efficiency or cost management associated with network and processing activities.
Professional Fees
Professional fees decreased consistently from -2.23% in 2017 to a low of -1.67% in 2021, with a slight increase to -1.72% in 2022, reflecting a general reduction in reliance or costs related to professional services over the years.
Depreciation and Amortization
Depreciation and amortization expenses fluctuated, starting at -3.03% in 2017, decreasing to -2.86% in 2019, rising sharply to -3.51% in 2020, then falling again to -2.94% in 2022. These variations suggest changes in asset base or capital expenditure patterns.
General and Administrative Expenses
A clear decreasing trend is observed, with general and administrative costs reducing from -5.77% in 2017 to -4.07% in 2022, indicating improved administrative cost control or operational efficiencies.
Litigation Provision
Litigation provisions showed volatility, spiking at -2.95% in 2018 and again at -2.96% in 2022, while remaining near zero in other years. This suggests episodic legal costs impacting these periods.
Operating Expenses
Operating expenses as a percentage of net revenues rose from -33.85% in 2017 to a peak of -37.14% in 2018, then stabilized around the mid-30s range, ending at -35.81% in 2022. The fluctuations signal varying cost pressures on the core operations.
Operating Income
Operating income demonstrated resilience, moving from 66.15% in 2017 to a decline to 62.86% in 2018, then gradually improving to 65.56% in 2021 before slightly dropping to 64.19% in 2022, reflecting steady profitability despite expense volatility.
Interest Expense
Interest expense declined consistently from -3.07% in 2017 to -1.84% in 2022, showing reduced financing costs or increased leverage efficiency.
Investment Income (Expense)
Investment income was positive early on, reaching a high of 3.03% in 2021, but turned negative in 2022 at -0.77%, indicating a downturn in investment returns or increased investment-related losses during the latest period.
Non-operating Income (Expense)
Non-operating results were variable, with negative contributions from -2.45% in 2017 improving to a positive 1.07% in 2021, then declining again to -2.31% in 2022, suggesting volatile non-core operational impacts.
Income Before Income Taxes
This income showed modest fluctuations, remaining within a range of approximately 61.88% to 66.64%, peaking in 2021 and then declining slightly in 2022, indicating fairly stable pre-tax profitability.
Income Tax Provision
The income tax provision as a percentage of net revenues was highest in 2017 at -27.21%, then significantly decreased and fluctuated between -12.15% and -15.57% in subsequent years, reaching a low of -10.85% in 2022, implying changes in tax strategies or effective tax rates.
Net Income
Net income improved notably from 36.49% in 2017 to a peak of 52.57% in 2019, remaining relatively high thereafter around the 50% mark, and concluding at 51.03% in 2022. This reflects strong profitability over the period despite some expense and tax provision variances.