Return on Assets (ROA)
since 2008
Calculation
Visa Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Sep 30, 2022 | 17.49% | = | 100 | × | 14,957) | ÷ | 85,501) |
| Sep 30, 2021 | 14.85% | = | 100 | × | 12,311) | ÷ | 82,896) |
| Sep 30, 2020 | 13.43% | = | 100 | × | 10,866) | ÷ | 80,919) |
| Sep 30, 2019 | 16.65% | = | 100 | × | 12,080) | ÷ | 72,574) |
| Sep 30, 2018 | 14.88% | = | 100 | × | 10,301) | ÷ | 69,225) |
| Sep 30, 2017 | 9.85% | = | 100 | × | 6,699) | ÷ | 67,977) |
| Sep 30, 2016 | 9.36% | = | 100 | × | 5,991) | ÷ | 64,035) |
| Sep 30, 2015 | 15.73% | = | 100 | × | 6,328) | ÷ | 40,236) |
| Sep 30, 2014 | 14.10% | = | 100 | × | 5,438) | ÷ | 38,569) |
| Sep 30, 2013 | 13.85% | = | 100 | × | 4,980) | ÷ | 35,956) |
| Sep 30, 2012 | 5.36% | = | 100 | × | 2,144) | ÷ | 40,013) |
| Sep 30, 2011 | 10.50% | = | 100 | × | 3,650) | ÷ | 34,760) |
| Sep 30, 2010 | 8.88% | = | 100 | × | 2,966) | ÷ | 33,408) |
| Sep 30, 2009 | 7.29% | = | 100 | × | 2,353) | ÷ | 32,281) |
| Sep 30, 2008 | 2.30% | = | 100 | × | 804) | ÷ | 34,981) |
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 return on assets (ROA) exhibited a general upward trajectory from 2008 to 2022, rising from an initial 2.30% to a peak of 17.49%. Although this growth was characterized by periodic fluctuations, the overall trend indicates a substantial increase in the efficiency of asset utilization to generate net income over the fourteen-year period.
- Net Income Trends
- Net income demonstrated significant long-term growth, increasing from 804 million USD in 2008 to 14,957 million USD in 2022. Notable acceleration occurred between 2012 and 2015, and again between 2017 and 2019, reflecting strong earnings expansion.
- Total Asset Evolution
- The asset base remained relatively stable between 2008 and 2015, fluctuating within the 32 billion to 40 billion USD range. A sharp expansion was observed in 2016, when total assets increased to 64,035 million USD, followed by a steady climb to 85,501 million USD by 2022.
- ROA Volatility and Asset Efficiency
- A peak in ROA was reached in 2015 at 15.73%, followed by a decline to 9.36% in 2016. This decline correlates with the substantial increase in total assets during that year, suggesting that asset growth temporarily outpaced earnings growth. Efficiency recovered thereafter, with ROA reaching 16.65% in 2019 and ultimately 17.49% in 2022.
The analysis indicates a high capacity for scaling operations while maintaining profitability. Despite the significant expansion of the balance sheet since 2016, the ability to convert assets into net income improved over time, culminating in the highest efficiency level recorded at the end of the observed period.
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Comparison to Competitors
Visa Inc., ROA, 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 | 17.49% | 14.55% | 17.51% | -3.30% | 16.53% | -1.67% | 1.29% | 7.45% | 19.94% | 6.15% | -10.80% | -2.18% | 1.52% | 2.44% | 10.45% | 0.28% |
| Sep 30, 2021 | 14.85% | 13.68% | 17.70% | 0.58% | 15.87% | -0.87% | 4.35% | 13.29% | 18.36% | 10.48% | -16.02% | -4.87% | 6.14% | 2.13% | 8.66% | -3.24% |
| Sep 30, 2020 | 13.43% | 13.78% | 21.66% | — | 14.95% | -1.30% | 3.58% | 16.70% | 14.70% | 8.78% | -43.35% | -2.95% | 0.23% | 1.36% | 8.27% | -7.05% |
| Sep 30, 2019 | 16.65% | 16.04% | 14.22% | — | 29.46% | -1.61% | 6.20% | 24.78% | 13.69% | 10.20% | — | -1.24% | 3.61% | 10.41% | 8.31% | -7.58% |
| Sep 30, 2018 | 14.88% | 16.61% | 13.80% | — | 14.01% | — | 7.07% | 23.39% | 6.40% | 2.79% | — | -2.54% | 0.61% | -0.69% | 7.04% | -6.49% |
| Sep 30, 2017 | 9.85% | 15.18% | 11.65% | — | 8.44% | — | 4.59% | 23.87% | 8.80% | 6.92% | — | -6.30% | 1.02% | -4.39% | 2.53% | -12.89% |
| Sep 30, 2016 | 9.36% | 19.95% | 9.20% | — | 9.69% | — | 10.11% | 23.04% | 8.67% | 7.93% | — | -8.18% | -0.37% | -22.22% | 5.09% | -10.62% |
| Sep 30, 2015 | 15.73% | 16.72% | 5.37% | — | 10.74% | — | 11.94% | 7.35% | 6.92% | 8.96% | — | -8.40% | -2.46% | -10.98% | 4.48% | -10.51% |
| Sep 30, 2014 | 14.10% | 16.41% | 2.49% | — | 4.95% | — | 10.23% | 17.44% | 12.81% | 12.13% | — | -15.32% | -2.54% | -12.59% | 5.43% | -7.93% |
| Sep 30, 2013 | 13.85% | 19.46% | 2.79% | — | 6.76% | — | 13.06% | 15.64% | 15.35% | 13.35% | — | -4.99% | -4.89% | -6.31% | 5.68% | -12.43% |
| Sep 30, 2012 | 5.36% | 15.32% | 8.35% | — | 19.24% | — | 13.93% | 16.91% | 14.00% | 12.74% | — | 0.18% | -0.28% | -7.81% | 4.40% | — |
| Sep 30, 2011 | 10.50% | 14.48% | 9.26% | — | 4.10% | — | 13.62% | 12.41% | 21.30% | 11.62% | — | — | 2.09% | — | 6.57% | — |
| Sep 30, 2010 | 8.88% | 13.87% | 9.52% | — | 7.31% | — | 13.07% | 11.04% | 21.79% | 9.96% | — | — | 3.28% | — | 7.21% | — |
| Sep 30, 2009 | 7.29% | 12.97% | 5.31% | — | -10.62% | — | 12.31% | 9.26% | 18.71% | 11.80% | — | — | 2.93% | — | 5.71% | — |
| Sep 30, 2008 | 2.30% | 13.64% | 14.98% | — | -110.44% | — | 11.26% | 10.22% | 24.29% | 11.68% | — | — | 1.68% | — | 6.93% | — |
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., ROA, long-term trends, comparison to sector (software & services)
| Visa Inc. | Software & Services | |
|---|---|---|
| Sep 30, 2022 | 17.49% | 11.32% |
| Sep 30, 2021 | 14.85% | 12.19% |
| Sep 30, 2020 | 13.43% | 9.68% |
| Sep 30, 2019 | 16.65% | 10.81% |
| Sep 30, 2018 | 14.88% | 6.11% |
| Sep 30, 2017 | 9.85% | 7.29% |
| Sep 30, 2016 | 9.36% | 8.86% |
| Sep 30, 2015 | 15.73% | 8.53% |
| Sep 30, 2014 | 14.10% | 11.18% |
| Sep 30, 2013 | 13.85% | 13.46% |
| Sep 30, 2012 | 5.36% | 13.36% |
| Sep 30, 2011 | 10.50% | 15.34% |
| Sep 30, 2010 | 8.88% | 14.69% |
| Sep 30, 2009 | 7.29% | 13.64% |
| Sep 30, 2008 | 2.30% | 14.32% |
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., ROA, long-term trends, comparison to industry (information technology)
| Visa Inc. | Information Technology | |
|---|---|---|
| Sep 30, 2022 | 17.49% | 14.33% |
| Sep 30, 2021 | 14.85% | 14.52% |
| Sep 30, 2020 | 13.43% | 11.46% |
| Sep 30, 2019 | 16.65% | 11.67% |
| Sep 30, 2018 | 14.88% | 10.94% |
| Sep 30, 2017 | 9.85% | 9.00% |
| Sep 30, 2016 | 9.36% | 9.68% |
| Sep 30, 2015 | 15.73% | 11.51% |
| Sep 30, 2014 | 14.10% | 12.33% |
| Sep 30, 2013 | 13.85% | 13.22% |
| Sep 30, 2012 | 5.36% | 14.06% |
| Sep 30, 2011 | 10.50% | 15.11% |
| Sep 30, 2010 | 8.88% | 14.45% |
| Sep 30, 2009 | 7.29% | 10.04% |
| Sep 30, 2008 | 2.30% | 11.87% |
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).