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
The data reflects significant shifts in the leverage and equity structure over the years analyzed. From 2008 through 2010, the level of long-term debt, including current maturities, remained quite low and gradually decreased from US$106 million to US$44 million, reflecting minimal leverage. Correspondingly, the debt-to-equity ratio was very low or zero, demonstrating a conservative capital structure with little reliance on debt financing during this period.
Starting 2016, there was a marked increase in long-term debt to the range of approximately US$15.8 billion to US$24.1 billion between 2016 and 2022. This sharp increase in leverage represents a strategic change in the company’s financing approach. Despite the increase in debt, equity also remains strong, growing steadily from about US$32.9 billion in 2016 to a peak close to US$37.6 billion by 2021 before declining slightly to approximately US$35.6 billion in 2022.
The debt to equity ratio started at a minimal level until around 2015 and then rose to a range between 0.48 and 0.66 through 2022, indicating that although leverage grew, equity continued to support a substantial portion of the capital structure. The peak debt-to-equity ratio of 0.66 in 2021 suggests the highest relative debt level, while subsequent slight decreases show some stabilization or modest reduction in leverage relative to equity.
Overall, the pattern indicates a transition from a low-leverage profile toward a balanced mix of debt and equity financing in recent years. The growth in equity alongside increased debt levels points to parallel growth strategies and potential investments funded through both equity and borrowed capital. The fluctuations in the debt-to-equity ratio in the later years may reflect active capital management decisions to optimize the financial structure.
- Long-term debt trends
- Minimal until 2010; sharp increase from 2016 onward to above US$20 billion.
- Equity trends
- Steady growth from approximately US$21 billion in 2008 to over US$37 billion in 2021, slight decrease in 2022.
- Debt to equity ratio trends
- Negligible from 2008 to 2010, increasing substantially after 2015, peaking at 0.66 in 2021, with slight reduction in 2022.
- Implications
- Shift toward leveraging capital structure with significant long-term debt increase while maintaining strong equity base, indicating strategic financing and investment activities.
Comparison to Competitors
Visa Inc., debt to equity, long-term trends, comparison to competitors
| Visa Inc. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Fair Isaac Corp. | 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 | 0.27 | 0.72 | — | 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 | 0.13 | 0.85 | — | 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 | 0.00 | 2.52 | 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 | — | 2.85 | 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 | — | 2.90 | 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 | — | 1.42 | 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 | — | 1.28 | 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 | — | 1.39 | 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 | — | 1.20 | 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 | — | 0.89 | 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 | — | 1.06 | 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 | — | 1.10 | 1.56 | 0.38 | 0.21 | 0.40 | — | — | 0.38 | — | 0.00 | — |
| Sep 30, 2010 | 0.00 | 0.00 | 0.29 | 1.99 | — | 1.09 | 1.24 | 0.35 | 0.13 | 0.48 | — | — | 0.45 | — | 0.00 | — |
| Sep 30, 2009 | 0.00 | 0.00 | 0.20 | 4.02 | — | 0.95 | 1.15 | 0.39 | 0.15 | 0.41 | — | — | 0.01 | — | 0.00 | — |
| Sep 30, 2008 | 0.01 | 0.00 | 0.08 | 4.91 | — | 1.01 | 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 | 1.08 |
| 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 | 0.45 |
| 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 | 0.83 |
| Sep 30, 2020 | 0.66 | 0.97 |
| Sep 30, 2019 | 0.48 | 0.98 |
| Sep 30, 2018 | 0.49 | 0.83 |
| Sep 30, 2017 | 0.56 | 0.81 |
| Sep 30, 2016 | 0.48 | 0.66 |
| Sep 30, 2015 | 0.00 | 0.56 |
| Sep 30, 2014 | 0.00 | 0.39 |
| Sep 30, 2013 | 0.00 | 0.29 |
| Sep 30, 2012 | 0.00 | 0.25 |
| Sep 30, 2011 | 0.00 | 0.27 |
| Sep 30, 2010 | 0.00 | 0.25 |
| Sep 30, 2009 | 0.00 | 0.26 |
| Sep 30, 2008 | 0.01 | 0.29 |
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).