Name: Visa Inc. (NYSE:V) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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Visa Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
Accounts payable	340)	266)	174)	156)	183)	179)
Settlement payable	3,281)	2,443)	1,736)	3,990)	2,168)	2,003)
Customer collateral	2,342)	2,260)	1,850)	1,648)	1,325)	1,106)
Accrued compensation and benefits	1,359)	1,211)	821)	796)	901)	757)
Client incentives	6,099)	5,243)	4,176)	3,997)	2,834)	2,089)
Accrued liabilities	3,726)	2,334)	1,840)	1,625)	1,160)	1,129)
Deferred purchase consideration	—)	—)	—)	—)	1,300)	—)
Current maturities of debt	2,250)	999)	2,999)	—)	—)	1,749)
Accrued litigation	1,456)	983)	914)	1,203)	1,434)	982)
Current liabilities	20,853)	15,739)	14,510)	13,415)	11,305)	9,994)
Long-term debt, excluding current maturities	20,200)	19,978)	21,071)	16,729)	16,630)	16,618)
Deferred tax liabilities	5,332)	6,128)	5,237)	4,807)	4,618)	5,980)
Deferred purchase consideration	—)	—)	—)	—)	—)	1,304)
Other liabilities	3,535)	3,462)	3,891)	2,939)	2,666)	1,321)
Non-current liabilities	29,067)	29,568)	30,199)	24,475)	23,914)	25,223)
Total liabilities	49,920)	45,307)	44,709)	37,890)	35,219)	35,217)
Series A, Series B and Series C convertible participating preferred stock (preferred stock), $0.0001 par value	2,324)	3,080)	5,086)	5,462)	5,470)	5,526)
Class A, Class B and Class C common stock and additional paid-in capital, $0.0001 par value	19,545)	18,855)	16,721)	16,541)	16,678)	16,900)
Right to recover for covered losses	(35)	(133)	(39)	(171)	(7)	(52)
Accumulated income	16,116)	15,351)	14,088)	13,502)	11,318)	9,508)
Investment securities	(106)	(1)	3)	6)	(17)	73)
Defined benefit pension and other postretirement plans	(169)	(49)	(196)	(192)	(61)	(76)
Derivative instruments	418)	(257)	(291)	199)	60)	(36)
Foreign currency translation adjustments	(2,512)	743)	838)	(663)	565)	917)
Accumulated other comprehensive income (loss), net	(2,369)	436)	354)	(650)	547)	878)
Equity	35,581)	37,589)	36,210)	34,684)	34,006)	32,760)
Total liabilities and equity	85,501)	82,896)	80,919)	72,574)	69,225)	67,977)

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).

Total liabilities and stockholders' equity grew from US$ 67,977 million in 2017 to US$ 85,501 million by 2022. This expansion was primarily driven by a substantial increase in total liabilities, which rose from US$ 35,217 million to US$ 49,920 million over the same period, while total equity remained relatively stable, ending at US$ 35,581 million in 2022.

Current Liabilities Trends: Current liabilities exhibited a sharp upward trajectory, increasing from US$ 9,994 million in 2017 to US$ 20,853 million in 2022. A significant driver of this growth was client incentives, which tripled from US$ 2,089 million to US$ 6,099 million. Accrued liabilities also showed marked growth, rising from US$ 1,129 million to US$ 3,726 million. Settlement payables remained volatile, peaking in 2019 at US$ 3,990 million before fluctuating and ending at US$ 3,281 million in 2022.
Long-Term Debt and Non-Current Liabilities: Non-current liabilities grew from US$ 25,223 million in 2017 to US$ 29,067 million in 2022, with a peak observed in 2020 at US$ 30,199 million. Long-term debt, excluding current maturities, increased from US$ 16,618 million in 2017 to US$ 20,200 million in 2022. The most notable increase in debt occurred between 2019 and 2020, where long-term debt rose from US$ 16,729 million to US$ 21,071 million.
Equity Composition and Retained Earnings: Stockholders' equity shifted in composition between 2017 and 2022. Accumulated income showed consistent growth, increasing from US$ 9,508 million to US$ 16,116 million, indicating strong retained profitability. Conversely, preferred stock was significantly reduced, falling from US$ 5,526 million in 2017 to US$ 2,324 million in 2022.
Comprehensive Income and Currency Volatility: Accumulated other comprehensive income (loss), net, demonstrated extreme volatility. After fluctuating between positive and negative values from 2017 to 2021, it dropped sharply to a loss of US$ 2,369 million in 2022. This was primarily driven by foreign currency translation adjustments, which shifted from a positive US$ 917 million in 2017 to a negative US$ 2,512 million in 2022.

The overall financial structure indicates a transition toward a higher liability-to-equity ratio. While the company consistently grew its accumulated income, the simultaneous increase in current liabilities and the impact of foreign currency translation losses on equity in 2022 contributed to a more leveraged balance sheet compared to 2017 levels.

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