Return on Equity (ROE)
since 2008
Calculation
Visa Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income1 | ÷ | Equity1 | |
|---|---|---|---|---|---|---|---|
| Sep 30, 2022 | 42.04% | = | 100 | × | 14,957) | ÷ | 35,581) |
| Sep 30, 2021 | 32.75% | = | 100 | × | 12,311) | ÷ | 37,589) |
| Sep 30, 2020 | 30.01% | = | 100 | × | 10,866) | ÷ | 36,210) |
| Sep 30, 2019 | 34.83% | = | 100 | × | 12,080) | ÷ | 34,684) |
| Sep 30, 2018 | 30.29% | = | 100 | × | 10,301) | ÷ | 34,006) |
| Sep 30, 2017 | 20.45% | = | 100 | × | 6,699) | ÷ | 32,760) |
| Sep 30, 2016 | 18.20% | = | 100 | × | 5,991) | ÷ | 32,912) |
| Sep 30, 2015 | 21.21% | = | 100 | × | 6,328) | ÷ | 29,842) |
| Sep 30, 2014 | 19.84% | = | 100 | × | 5,438) | ÷ | 27,413) |
| Sep 30, 2013 | 18.53% | = | 100 | × | 4,980) | ÷ | 26,870) |
| Sep 30, 2012 | 7.76% | = | 100 | × | 2,144) | ÷ | 27,630) |
| Sep 30, 2011 | 13.81% | = | 100 | × | 3,650) | ÷ | 26,437) |
| Sep 30, 2010 | 11.86% | = | 100 | × | 2,966) | ÷ | 25,011) |
| Sep 30, 2009 | 10.15% | = | 100 | × | 2,353) | ÷ | 23,189) |
| Sep 30, 2008 | 3.80% | = | 100 | × | 804) | ÷ | 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 financial performance from 2008 to 2022 demonstrates a significant expansion in profitability and a substantial increase in the efficiency of equity utilization.
- Net Income Trajectory
- Net income exhibited a strong long-term upward trend, rising from US$ 804 million in 2008 to US$ 14,957 million by 2022. While the overall trajectory was positive, periodic fluctuations occurred, notably in 2012 and 2020, before the figures reached record highs in the final reporting period.
- Equity Management
- Shareholders' equity grew steadily from US$ 21,141 million in 2008 to US$ 35,581 million in 2022. The growth of the equity base remained relatively moderate and stable when compared to the more aggressive growth seen in net income, suggesting a controlled expansion of the company's capital structure.
- Return on Equity (ROE) Analysis
- The return on equity experienced a dramatic increase over the 14-year period, moving from 3.80% in 2008 to 42.04% in 2022. This progression was characterized by an initial climb to 13.81% by 2011, followed by a sharp decline to 7.76% in 2012. Recovery began in 2013, with ROE consistently remaining above 18% from 2013 through 2022.
- Efficiency and Profitability Trends
- A notable acceleration in capital efficiency is observed between 2017 and 2019, during which ROE rose from 20.45% to 34.83%. The final peak of 42.04% in 2022 was driven by the combination of the highest recorded net income and a slight contraction in total equity, indicating a high degree of leverage and operational efficiency in generating profit from shareholders' investments.
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Comparison to Competitors
Visa Inc., ROE, 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 | 42.04% | 31.11% | 33.85% | -10.13% | 30.93% | -3.56% | 7.47% | 12.57% | 43.68% | — | -14.57% | -127.14% | 2.48% | 6.46% | 17.85% | 0.65% |
| Sep 30, 2021 | 32.75% | 30.25% | 32.59% | 1.66% | 25.39% | -1.99% | 30.38% | 20.89% | 43.15% | 262.43% | -22.71% | -78.63% | 9.81% | 6.22% | 14.31% | -8.62% |
| Sep 30, 2020 | 30.01% | 30.05% | 39.66% | — | 23.69% | -2.56% | 27.14% | 35.76% | 37.43% | 83.94% | -76.61% | -24.23% | 0.37% | 4.18% | 13.54% | -19.33% |
| Sep 30, 2019 | 34.83% | 33.17% | 28.03% | — | 47.03% | -2.14% | 45.25% | 41.53% | 38.35% | 50.87% | — | -5.16% | 7.11% | 29.45% | 13.04% | -21.36% |
| Sep 30, 2018 | 30.29% | 39.17% | 27.67% | — | 26.84% | — | 51.96% | 51.44% | 20.03% | 8.37% | — | -15.30% | 1.36% | -2.40% | 12.43% | -20.33% |
| Sep 30, 2017 | 20.45% | 38.50% | 20.02% | — | 20.63% | — | 32.70% | 71.71% | 29.29% | 17.33% | — | -28.52% | 2.40% | -25.53% | 4.17% | -35.11% |
| Sep 30, 2016 | 18.20% | 54.42% | 15.74% | — | 27.38% | — | 65.07% | 84.32% | 23.33% | 18.82% | — | -28.60% | -0.95% | -116.76% | 8.35% | -25.52% |
| Sep 30, 2015 | 21.21% | 49.78% | 8.99% | — | 18.34% | — | 92.48% | 15.65% | 15.23% | 20.42% | — | -33.81% | -6.61% | -35.01% | 7.21% | -22.02% |
| Sep 30, 2014 | 19.84% | 51.32% | 3.96% | — | 11.92% | — | 101.30% | 29.47% | 24.59% | 23.37% | — | -48.33% | -7.64% | -41.85% | 8.48% | -14.53% |
| Sep 30, 2013 | 18.53% | 66.16% | 4.31% | — | 14.21% | — | 72.32% | 24.30% | 27.69% | 24.47% | — | -10.74% | -11.67% | -18.70% | 8.89% | -20.12% |
| Sep 30, 2012 | 7.76% | 61.59% | 12.49% | — | 48.07% | — | 88.04% | 28.86% | 25.58% | 22.85% | — | 0.32% | -0.73% | -15.34% | 7.29% | — |
| Sep 30, 2011 | 13.81% | 58.72% | 14.40% | — | 17.57% | — | 78.73% | 24.24% | 40.55% | 21.49% | — | — | 5.05% | — | 10.53% | — |
| Sep 30, 2010 | 11.86% | 62.79% | 14.92% | — | 45.74% | — | 64.36% | 20.35% | 40.63% | 19.92% | — | — | 7.73% | — | 11.29% | — |
| Sep 30, 2009 | 10.15% | 55.08% | 7.90% | — | -138.29% | — | 59.31% | 17.49% | 36.83% | 22.29% | — | — | 6.46% | — | 9.09% | — |
| Sep 30, 2008 | 3.80% | 66.59% | 19.77% | — | -1,818.25% | — | 91.60% | 23.00% | 48.73% | 23.98% | — | — | 4.06% | — | 12.43% | — |
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., ROE, long-term trends, comparison to sector (software & services)
| Visa Inc. | Software & Services | |
|---|---|---|
| Sep 30, 2022 | 42.04% | 30.78% |
| Sep 30, 2021 | 32.75% | 35.91% |
| Sep 30, 2020 | 30.01% | 30.34% |
| Sep 30, 2019 | 34.83% | 35.56% |
| Sep 30, 2018 | 30.29% | 20.20% |
| Sep 30, 2017 | 20.45% | 23.83% |
| Sep 30, 2016 | 18.20% | 26.25% |
| Sep 30, 2015 | 21.21% | 23.04% |
| Sep 30, 2014 | 19.84% | 28.09% |
| Sep 30, 2013 | 18.53% | 31.71% |
| Sep 30, 2012 | 7.76% | 32.66% |
| Sep 30, 2011 | 13.81% | 38.82% |
| Sep 30, 2010 | 11.86% | 37.89% |
| Sep 30, 2009 | 10.15% | 35.98% |
| Sep 30, 2008 | 3.80% | 44.03% |
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., ROE, long-term trends, comparison to industry (information technology)
| Visa Inc. | Information Technology | |
|---|---|---|
| Sep 30, 2022 | 42.04% | 38.03% |
| Sep 30, 2021 | 32.75% | 41.64% |
| Sep 30, 2020 | 30.01% | 35.38% |
| Sep 30, 2019 | 34.83% | 35.94% |
| Sep 30, 2018 | 30.29% | 30.23% |
| Sep 30, 2017 | 20.45% | 23.19% |
| Sep 30, 2016 | 18.20% | 23.00% |
| Sep 30, 2015 | 21.21% | 25.97% |
| Sep 30, 2014 | 19.84% | 25.43% |
| Sep 30, 2013 | 18.53% | 24.73% |
| Sep 30, 2012 | 7.76% | 26.09% |
| Sep 30, 2011 | 13.81% | 29.03% |
| Sep 30, 2010 | 11.86% | 27.62% |
| Sep 30, 2009 | 10.15% | 20.05% |
| Sep 30, 2008 | 3.80% | 25.24% |
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).