Net Profit Margin
since 2008
Calculation
Visa Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income1 | ÷ | Net revenues1 | |
|---|---|---|---|---|---|---|---|
| Sep 30, 2022 | 51.03% | = | 100 | × | 14,957) | ÷ | 29,310) |
| Sep 30, 2021 | 51.07% | = | 100 | × | 12,311) | ÷ | 24,105) |
| Sep 30, 2020 | 49.74% | = | 100 | × | 10,866) | ÷ | 21,846) |
| Sep 30, 2019 | 52.57% | = | 100 | × | 12,080) | ÷ | 22,977) |
| Sep 30, 2018 | 49.98% | = | 100 | × | 10,301) | ÷ | 20,609) |
| Sep 30, 2017 | 36.49% | = | 100 | × | 6,699) | ÷ | 18,358) |
| Sep 30, 2016 | 39.72% | = | 100 | × | 5,991) | ÷ | 15,082) |
| Sep 30, 2015 | 45.59% | = | 100 | × | 6,328) | ÷ | 13,880) |
| Sep 30, 2014 | 42.81% | = | 100 | × | 5,438) | ÷ | 12,702) |
| Sep 30, 2013 | 42.28% | = | 100 | × | 4,980) | ÷ | 11,778) |
| Sep 30, 2012 | 20.57% | = | 100 | × | 2,144) | ÷ | 10,421) |
| Sep 30, 2011 | 39.73% | = | 100 | × | 3,650) | ÷ | 9,188) |
| Sep 30, 2010 | 36.78% | = | 100 | × | 2,966) | ÷ | 8,065) |
| Sep 30, 2009 | 34.05% | = | 100 | × | 2,353) | ÷ | 6,911) |
| Sep 30, 2008 | 12.84% | = | 100 | × | 804) | ÷ | 6,263) |
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 financial performance from 2008 to 2022 is characterized by substantial growth in both top-line revenue and bottom-line net income. Net revenues increased from US$ 6,263 million to US$ 29,310 million, while net income grew from US$ 804 million to US$ 14,957 million. This trajectory indicates a significant scaling of operations accompanied by a marked increase in operational efficiency.
- Net Profit Margin Evolution
- The net profit margin exhibited a strong overall upward trend, rising from 12.84% in 2008 to 51.03% in 2022. A period of rapid margin expansion occurred between 2008 and 2011, during which the margin grew from 12.84% to 39.73%.
- Analysis of Profitability Volatility
- A significant contraction is observed in 2012, where the net profit margin dropped to 20.57%. During this period, net income decreased to US$ 2,144 million despite a continued increase in net revenues to US$ 10,421 million, suggesting a temporary surge in expenses or non-recurring costs.
- Margin Recovery and Stabilization
- Following the 2012 decline, profitability recovered sharply, exceeding 40% by 2013 and continuing to climb until 2019, when it peaked at 52.57%. Between 2018 and 2022, the net profit margin stabilized within a narrow range of 49.74% to 52.57%, indicating a mature and highly optimized cost structure.
- Revenue and Income Correlation
- The data reveals that net income growth significantly outpaced revenue growth over the 14-year horizon. While net revenues grew approximately 4.7 times, net income grew more than 18 times, which drove the sustained expansion of the net profit margin.
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Comparison to Competitors
Visa Inc., net profit margin, 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 | 51.03% | 11.17% | 27.01% | -6.84% | 23.84% | -2.99% | 2.71% | 16.23% | 36.69% | 15.83% | -19.61% | -4.85% | 5.45% | 4.49% | 19.38% | 0.57% |
| Sep 30, 2021 | 51.07% | 11.69% | 30.55% | 1.27% | 23.29% | -2.02% | 10.01% | 21.41% | 36.45% | 33.96% | -33.75% | -11.72% | 19.16% | 3.90% | 18.02% | -6.54% |
| Sep 30, 2020 | 49.74% | 11.52% | 40.88% | — | 22.02% | -4.07% | 7.59% | 23.78% | 30.96% | 25.94% | -106.75% | -7.83% | 0.74% | 2.62% | 18.03% | -13.25% |
| Sep 30, 2019 | 52.57% | 11.06% | 26.42% | — | 42.33% | -4.61% | 12.22% | 22.95% | 31.18% | 28.05% | — | -2.82% | 8.36% | 18.11% | 15.84% | -14.82% |
| Sep 30, 2018 | 49.98% | 9.76% | 28.69% | — | 16.17% | — | 10.97% | 20.31% | 15.02% | 9.60% | — | -6.51% | 1.22% | -1.02% | 13.86% | -14.99% |
| Sep 30, 2017 | 36.49% | 9.37% | 23.20% | — | 10.50% | — | 7.27% | 18.76% | 23.57% | 24.74% | — | -12.30% | 2.14% | -7.71% | 5.01% | -26.01% |
| Sep 30, 2016 | 39.72% | 11.82% | 19.96% | — | 11.18% | — | 14.86% | 20.86% | 19.69% | 24.03% | — | -16.39% | -0.71% | -32.49% | 11.01% | -24.94% |
| Sep 30, 2015 | 45.59% | 9.28% | 13.13% | — | 14.83% | — | 16.14% | 8.71% | 13.03% | 26.00% | — | -17.78% | -4.89% | -19.73% | 10.08% | -31.48% |
| Sep 30, 2014 | 42.81% | 9.23% | 6.47% | — | 10.05% | — | 12.96% | 20.13% | 25.42% | 28.62% | — | -37.86% | -5.70% | -26.28% | 12.59% | -36.79% |
| Sep 30, 2013 | 42.28% | 10.80% | 7.15% | — | 11.25% | — | 16.52% | 20.57% | 28.08% | 29.38% | — | -7.38% | -8.87% | -17.36% | 12.63% | -43.55% |
| Sep 30, 2012 | 20.57% | 8.58% | 18.91% | — | 33.17% | — | 15.89% | 19.08% | 23.03% | 26.89% | — | 0.29% | -0.51% | -15.32% | 10.39% | — |
| Sep 30, 2011 | 39.73% | 8.33% | 19.75% | — | 6.28% | — | 14.83% | 16.46% | 33.10% | 23.99% | — | — | 3.89% | — | 14.42% | — |
| Sep 30, 2010 | 36.78% | 7.71% | 20.39% | — | 13.52% | — | 14.85% | 16.61% | 30.02% | 22.87% | — | — | 6.18% | — | 17.17% | — |
| Sep 30, 2009 | 34.05% | 6.86% | 13.12% | — | -17.58% | — | 14.02% | 14.05% | 24.93% | 24.05% | — | — | 4.03% | — | 12.33% | — |
| Sep 30, 2008 | 12.84% | 6.68% | 24.35% | — | -178.51% | — | 11.90% | 15.52% | 29.26% | 24.61% | — | — | 2.45% | — | 14.21% | — |
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., net profit margin, long-term trends, comparison to sector (software & services)
| Visa Inc. | Software & Services | |
|---|---|---|
| Sep 30, 2022 | 51.03% | 21.55% |
| Sep 30, 2021 | 51.07% | 25.12% |
| Sep 30, 2020 | 49.74% | 20.08% |
| Sep 30, 2019 | 52.57% | 21.61% |
| Sep 30, 2018 | 49.98% | 12.10% |
| Sep 30, 2017 | 36.49% | 15.36% |
| Sep 30, 2016 | 39.72% | 16.49% |
| Sep 30, 2015 | 45.59% | 14.57% |
| Sep 30, 2014 | 42.81% | 18.21% |
| Sep 30, 2013 | 42.28% | 20.55% |
| Sep 30, 2012 | 20.57% | 18.62% |
| Sep 30, 2011 | 39.73% | 20.48% |
| Sep 30, 2010 | 36.78% | 19.41% |
| Sep 30, 2009 | 34.05% | 17.17% |
| Sep 30, 2008 | 12.84% | 16.67% |
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., net profit margin, long-term trends, comparison to industry (information technology)
| Visa Inc. | Information Technology | |
|---|---|---|
| Sep 30, 2022 | 51.03% | 22.27% |
| Sep 30, 2021 | 51.07% | 23.48% |
| Sep 30, 2020 | 49.74% | 19.76% |
| Sep 30, 2019 | 52.57% | 19.73% |
| Sep 30, 2018 | 49.98% | 18.59% |
| Sep 30, 2017 | 36.49% | 17.77% |
| Sep 30, 2016 | 39.72% | 17.58% |
| Sep 30, 2015 | 45.59% | 18.32% |
| Sep 30, 2014 | 42.81% | 19.33% |
| Sep 30, 2013 | 42.28% | 20.15% |
| Sep 30, 2012 | 20.57% | 20.07% |
| Sep 30, 2011 | 39.73% | 20.71% |
| Sep 30, 2010 | 36.78% | 20.19% |
| Sep 30, 2009 | 34.05% | 14.45% |
| Sep 30, 2008 | 12.84% | 15.07% |
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).