Debt to Equity
since 2008
Calculation
Visa Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Long-term debt, including current maturities1 | ÷ | Equity1 | |
|---|---|---|---|---|---|
| Sep 30, 2022 | 0.63 | = | 22,450) | ÷ | 35,581) |
| Sep 30, 2021 | 0.56 | = | 20,977) | ÷ | 37,589) |
| Sep 30, 2020 | 0.66 | = | 24,070) | ÷ | 36,210) |
| Sep 30, 2019 | 0.48 | = | 16,729) | ÷ | 34,684) |
| Sep 30, 2018 | 0.49 | = | 16,630) | ÷ | 34,006) |
| Sep 30, 2017 | 0.56 | = | 18,367) | ÷ | 32,760) |
| Sep 30, 2016 | 0.48 | = | 15,882) | ÷ | 32,912) |
| Sep 30, 2015 | 0.00 | = | —) | ÷ | 29,842) |
| Sep 30, 2014 | 0.00 | = | —) | ÷ | 27,413) |
| Sep 30, 2013 | 0.00 | = | —) | ÷ | 26,870) |
| Sep 30, 2012 | 0.00 | = | —) | ÷ | 27,630) |
| Sep 30, 2011 | 0.00 | = | —) | ÷ | 26,437) |
| Sep 30, 2010 | 0.00 | = | 44) | ÷ | 25,011) |
| Sep 30, 2009 | 0.00 | = | 56) | ÷ | 23,189) |
| Sep 30, 2008 | 0.01 | = | 106) | ÷ | 21,141) |
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), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30).
1 US$ in millions
An analysis of the capital structure reveals two distinct phases of financing strategy between 2008 and 2022. The initial period was characterized by a near-absence of long-term debt, while the latter period indicates a strategic shift toward increased leverage.
- Long-Term Debt Trends
- Long-term debt levels were minimal from 2008 to 2010, declining from 106 million USD to 44 million USD. A substantial increase in borrowing is observed starting in 2016, with debt rising to 15,882 million USD. This upward trend peaked in 2020 at 24,070 million USD, before settling at 22,450 million USD by the end of 2022.
- Equity Growth Patterns
- Equity exhibited a steady upward trajectory for the majority of the period, growing from 21,141 million USD in 2008 to a peak of 37,589 million USD in 2021. A modest decline was noted in 2022, with equity closing at 35,581 million USD.
- Debt to Equity Ratio Interpretation
- The debt to equity ratio remained negligible between 2008 and 2010, reflecting a virtually debt-free balance sheet. Following the increase in long-term debt in 2016, the ratio shifted significantly, fluctuating between 0.48 and 0.66. The leverage peaked in 2020 at 0.66, and the ratio ended the period at 0.63 in 2022, suggesting a permanent change in the company's approach to capital gearing.
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Comparison to Competitors
Visa Inc., debt to equity, long-term trends, comparison to competitors
| Visa Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sep 30, 2022 | 0.63 | 0.00 | 0.29 | 1.69 | 0.27 | 0.52 | 2.32 | 0.42 | 0.39 | — | 0.00 | 17.51 | 0.19 | 0.30 | 0.00 | 0.41 |
| Sep 30, 2021 | 0.56 | 0.00 | 0.28 | 1.51 | 0.13 | 0.71 | 2.74 | 0.21 | 0.50 | 16.08 | 0.00 | 5.08 | 0.07 | 0.43 | 0.02 | 0.55 |
| Sep 30, 2020 | 0.66 | 0.00 | 0.31 | — | 0.14 | 0.60 | 2.99 | 0.66 | 0.62 | 5.93 | 0.13 | 2.80 | 0.09 | 0.58 | 0.03 | 0.51 |
| Sep 30, 2019 | 0.48 | 0.00 | 0.39 | — | 0.16 | 0.00 | 3.02 | 0.12 | 0.77 | 2.58 | — | 0.90 | 0.22 | 0.33 | 0.03 | 0.62 |
| Sep 30, 2018 | 0.49 | 0.00 | 0.44 | — | 0.35 | — | 2.73 | 0.19 | 0.97 | 1.33 | — | 1.99 | 0.21 | 0.60 | 0.13 | 0.94 |
| Sep 30, 2017 | 0.56 | 0.00 | 0.22 | — | 0.74 | — | 2.66 | 0.36 | 1.23 | 1.08 | — | 0.69 | 0.32 | 2.01 | 0.04 | 0.46 |
| Sep 30, 2016 | 0.48 | 0.00 | 0.26 | — | 0.93 | — | 2.31 | 0.86 | 0.76 | 0.93 | — | 0.64 | 0.36 | 1.31 | 0.06 | 0.45 |
| Sep 30, 2015 | 0.00 | 0.00 | 0.27 | — | 0.25 | — | 2.80 | 0.21 | 0.44 | 0.86 | — | 1.00 | 0.49 | 0.84 | 0.07 | 0.44 |
| Sep 30, 2014 | 0.00 | 0.00 | 0.22 | — | 0.52 | — | 3.44 | 0.16 | 0.25 | 0.52 | — | 1.00 | 0.79 | 1.04 | 0.02 | 0.41 |
| Sep 30, 2013 | 0.00 | 0.01 | 0.23 | — | 0.28 | — | 1.74 | 0.14 | 0.20 | 0.41 | — | 0.00 | 0.25 | 1.05 | 0.04 | 0.04 |
| Sep 30, 2012 | 0.00 | 0.00 | 0.23 | — | 0.49 | — | 1.76 | 0.18 | 0.18 | 0.38 | — | 0.00 | 0.35 | 0.00 | 0.05 | — |
| Sep 30, 2011 | 0.00 | 0.00 | 0.26 | — | 1.04 | — | 1.56 | 0.38 | 0.21 | 0.40 | — | — | 0.38 | — | 0.00 | — |
| Sep 30, 2010 | 0.00 | 0.00 | 0.29 | — | 1.99 | — | 1.24 | 0.35 | 0.13 | 0.48 | — | — | 0.45 | — | 0.00 | — |
| Sep 30, 2009 | 0.00 | 0.00 | 0.20 | — | 4.02 | — | 1.15 | 0.39 | 0.15 | 0.41 | — | — | 0.01 | — | 0.00 | — |
| Sep 30, 2008 | 0.01 | 0.00 | 0.08 | — | 4.91 | — | 2.52 | 0.48 | 0.00 | 0.49 | — | — | 0.00 | — | 0.00 | — |
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), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30).
Comparison to Sector (Software & Services)
Visa Inc., debt to equity, long-term trends, comparison to sector (software & services)
| Visa Inc. | Software & Services | |
|---|---|---|
| Sep 30, 2022 | 0.63 | 0.71 |
| Sep 30, 2021 | 0.56 | 0.83 |
| Sep 30, 2020 | 0.66 | 0.95 |
| Sep 30, 2019 | 0.48 | 1.04 |
| Sep 30, 2018 | 0.49 | 1.07 |
| Sep 30, 2017 | 0.56 | 1.14 |
| Sep 30, 2016 | 0.48 | 0.90 |
| Sep 30, 2015 | 0.00 | 0.73 |
| Sep 30, 2014 | 0.00 | 0.54 |
| Sep 30, 2013 | 0.00 | 0.46 |
| Sep 30, 2012 | 0.00 | 0.44 |
| Sep 30, 2011 | 0.00 | 0.47 |
| Sep 30, 2010 | 0.00 | 0.46 |
| Sep 30, 2009 | 0.00 | 0.44 |
| Sep 30, 2008 | 0.01 | 0.56 |
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), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30).
Comparison to Industry (Information Technology)
Visa Inc., debt to equity, long-term trends, comparison to industry (information technology)
| Visa Inc. | Information Technology | |
|---|---|---|
| Sep 30, 2022 | 0.63 | 0.70 |
| Sep 30, 2021 | 0.56 | 0.82 |
| Sep 30, 2020 | 0.66 | 0.95 |
| Sep 30, 2019 | 0.48 | 0.97 |
| Sep 30, 2018 | 0.49 | 0.82 |
| Sep 30, 2017 | 0.56 | 0.80 |
| Sep 30, 2016 | 0.48 | 0.65 |
| Sep 30, 2015 | 0.00 | 0.56 |
| Sep 30, 2014 | 0.00 | 0.38 |
| Sep 30, 2013 | 0.00 | 0.28 |
| Sep 30, 2012 | 0.00 | 0.24 |
| Sep 30, 2011 | 0.00 | 0.27 |
| Sep 30, 2010 | 0.00 | 0.24 |
| Sep 30, 2009 | 0.00 | 0.25 |
| Sep 30, 2008 | 0.01 | 0.28 |
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), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30).