Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Analysis of Long-term (Investment) Activity Ratios
- Price to FCFE (P/FCFE)
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2008
- Current Ratio since 2008
- Price to Earnings (P/E) since 2008
- Aggregate Accruals
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Solvency Ratios (Summary)
Based on: 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).
Solvency ratio | Description | The company |
---|---|---|
Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Visa Inc. debt to equity ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Visa Inc. debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Visa Inc. debt to capital ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Visa Inc. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Visa Inc. debt to assets ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Visa Inc. debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Visa Inc. financial leverage ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021. |
Solvency ratio | Description | The company |
---|---|---|
Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Visa Inc. interest coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Visa Inc. fixed charge coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Equity
Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Current maturities of debt | |||||||
Long-term debt, excluding current maturities | |||||||
Total debt | |||||||
Equity | |||||||
Solvency Ratio | |||||||
Debt to equity1 | |||||||
Benchmarks | |||||||
Debt to Equity, Competitors2 | |||||||
Accenture PLC | |||||||
Adobe Inc. | |||||||
Automatic Data Processing Inc. | |||||||
International Business Machines Corp. | |||||||
Intuit Inc. | |||||||
Mastercard Inc. | |||||||
Microsoft Corp. | |||||||
Oracle Corp. | |||||||
PayPal Holdings Inc. | |||||||
Salesforce Inc. | |||||||
ServiceNow Inc. | |||||||
Debt to Equity, Sector | |||||||
Software & Services | |||||||
Debt to Equity, Industry | |||||||
Information Technology |
Based on: 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).
1 2021 Calculation
Debt to equity = Total debt ÷ Equity
= ÷ =
2 Click competitor name to see calculations.
Solvency ratio | Description | The company |
---|---|---|
Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Visa Inc. debt to equity ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Debt to Equity (including Operating Lease Liability)
Visa Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Current maturities of debt | |||||||
Long-term debt, excluding current maturities | |||||||
Total debt | |||||||
Current portion of operating lease liabilities (included in Accrued liabilities) | |||||||
Long-term portion of operating lease liabilities (included in Other liabilities) | |||||||
Total debt (including operating lease liability) | |||||||
Equity | |||||||
Solvency Ratio | |||||||
Debt to equity (including operating lease liability)1 | |||||||
Benchmarks | |||||||
Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
Accenture PLC | |||||||
Adobe Inc. | |||||||
Automatic Data Processing Inc. | |||||||
International Business Machines Corp. | |||||||
Intuit Inc. | |||||||
Mastercard Inc. | |||||||
Microsoft Corp. | |||||||
Oracle Corp. | |||||||
PayPal Holdings Inc. | |||||||
Salesforce Inc. | |||||||
ServiceNow Inc. | |||||||
Debt to Equity (including Operating Lease Liability), Sector | |||||||
Software & Services | |||||||
Debt to Equity (including Operating Lease Liability), Industry | |||||||
Information Technology |
Based on: 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).
1 2021 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Equity
= ÷ =
2 Click competitor name to see calculations.
Solvency ratio | Description | The company |
---|---|---|
Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Visa Inc. debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Debt to Capital
Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Current maturities of debt | |||||||
Long-term debt, excluding current maturities | |||||||
Total debt | |||||||
Equity | |||||||
Total capital | |||||||
Solvency Ratio | |||||||
Debt to capital1 | |||||||
Benchmarks | |||||||
Debt to Capital, Competitors2 | |||||||
Accenture PLC | |||||||
Adobe Inc. | |||||||
Automatic Data Processing Inc. | |||||||
International Business Machines Corp. | |||||||
Intuit Inc. | |||||||
Mastercard Inc. | |||||||
Microsoft Corp. | |||||||
Oracle Corp. | |||||||
PayPal Holdings Inc. | |||||||
Salesforce Inc. | |||||||
ServiceNow Inc. | |||||||
Debt to Capital, Sector | |||||||
Software & Services | |||||||
Debt to Capital, Industry | |||||||
Information Technology |
Based on: 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).
1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
Solvency ratio | Description | The company |
---|---|---|
Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Visa Inc. debt to capital ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Debt to Capital (including Operating Lease Liability)
Visa Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Current maturities of debt | |||||||
Long-term debt, excluding current maturities | |||||||
Total debt | |||||||
Current portion of operating lease liabilities (included in Accrued liabilities) | |||||||
Long-term portion of operating lease liabilities (included in Other liabilities) | |||||||
Total debt (including operating lease liability) | |||||||
Equity | |||||||
Total capital (including operating lease liability) | |||||||
Solvency Ratio | |||||||
Debt to capital (including operating lease liability)1 | |||||||
Benchmarks | |||||||
Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
Accenture PLC | |||||||
Adobe Inc. | |||||||
Automatic Data Processing Inc. | |||||||
International Business Machines Corp. | |||||||
Intuit Inc. | |||||||
Mastercard Inc. | |||||||
Microsoft Corp. | |||||||
Oracle Corp. | |||||||
PayPal Holdings Inc. | |||||||
Salesforce Inc. | |||||||
ServiceNow Inc. | |||||||
Debt to Capital (including Operating Lease Liability), Sector | |||||||
Software & Services | |||||||
Debt to Capital (including Operating Lease Liability), Industry | |||||||
Information Technology |
Based on: 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).
1 2021 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
2 Click competitor name to see calculations.
Solvency ratio | Description | The company |
---|---|---|
Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Visa Inc. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Debt to Assets
Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Current maturities of debt | |||||||
Long-term debt, excluding current maturities | |||||||
Total debt | |||||||
Total assets | |||||||
Solvency Ratio | |||||||
Debt to assets1 | |||||||
Benchmarks | |||||||
Debt to Assets, Competitors2 | |||||||
Accenture PLC | |||||||
Adobe Inc. | |||||||
Automatic Data Processing Inc. | |||||||
International Business Machines Corp. | |||||||
Intuit Inc. | |||||||
Mastercard Inc. | |||||||
Microsoft Corp. | |||||||
Oracle Corp. | |||||||
PayPal Holdings Inc. | |||||||
Salesforce Inc. | |||||||
ServiceNow Inc. | |||||||
Debt to Assets, Sector | |||||||
Software & Services | |||||||
Debt to Assets, Industry | |||||||
Information Technology |
Based on: 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).
1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
Solvency ratio | Description | The company |
---|---|---|
Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Visa Inc. debt to assets ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Debt to Assets (including Operating Lease Liability)
Visa Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Current maturities of debt | |||||||
Long-term debt, excluding current maturities | |||||||
Total debt | |||||||
Current portion of operating lease liabilities (included in Accrued liabilities) | |||||||
Long-term portion of operating lease liabilities (included in Other liabilities) | |||||||
Total debt (including operating lease liability) | |||||||
Total assets | |||||||
Solvency Ratio | |||||||
Debt to assets (including operating lease liability)1 | |||||||
Benchmarks | |||||||
Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
Accenture PLC | |||||||
Adobe Inc. | |||||||
Automatic Data Processing Inc. | |||||||
International Business Machines Corp. | |||||||
Intuit Inc. | |||||||
Mastercard Inc. | |||||||
Microsoft Corp. | |||||||
Oracle Corp. | |||||||
PayPal Holdings Inc. | |||||||
Salesforce Inc. | |||||||
ServiceNow Inc. | |||||||
Debt to Assets (including Operating Lease Liability), Sector | |||||||
Software & Services | |||||||
Debt to Assets (including Operating Lease Liability), Industry | |||||||
Information Technology |
Based on: 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).
1 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
Solvency ratio | Description | The company |
---|---|---|
Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Visa Inc. debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Financial Leverage
Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Total assets | |||||||
Equity | |||||||
Solvency Ratio | |||||||
Financial leverage1 | |||||||
Benchmarks | |||||||
Financial Leverage, Competitors2 | |||||||
Accenture PLC | |||||||
Adobe Inc. | |||||||
Automatic Data Processing Inc. | |||||||
International Business Machines Corp. | |||||||
Intuit Inc. | |||||||
Mastercard Inc. | |||||||
Microsoft Corp. | |||||||
Oracle Corp. | |||||||
PayPal Holdings Inc. | |||||||
Salesforce Inc. | |||||||
ServiceNow Inc. | |||||||
Financial Leverage, Sector | |||||||
Software & Services | |||||||
Financial Leverage, Industry | |||||||
Information Technology |
Based on: 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).
1 2021 Calculation
Financial leverage = Total assets ÷ Equity
= ÷ =
2 Click competitor name to see calculations.
Solvency ratio | Description | The company |
---|---|---|
Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Visa Inc. financial leverage ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021. |
Interest Coverage
Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Net income | |||||||
Add: Income tax expense | |||||||
Add: Interest expense, net | |||||||
Earnings before interest and tax (EBIT) | |||||||
Solvency Ratio | |||||||
Interest coverage1 | |||||||
Benchmarks | |||||||
Interest Coverage, Competitors2 | |||||||
Accenture PLC | |||||||
Adobe Inc. | |||||||
Automatic Data Processing Inc. | |||||||
International Business Machines Corp. | |||||||
Intuit Inc. | |||||||
Mastercard Inc. | |||||||
Microsoft Corp. | |||||||
Oracle Corp. | |||||||
PayPal Holdings Inc. | |||||||
Salesforce Inc. | |||||||
ServiceNow Inc. | |||||||
Interest Coverage, Sector | |||||||
Software & Services | |||||||
Interest Coverage, Industry | |||||||
Information Technology |
Based on: 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).
1 2021 Calculation
Interest coverage = EBIT ÷ Interest expense
= ÷ =
2 Click competitor name to see calculations.
Solvency ratio | Description | The company |
---|---|---|
Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Visa Inc. interest coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Fixed Charge Coverage
Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Net income | |||||||
Add: Income tax expense | |||||||
Add: Interest expense, net | |||||||
Earnings before interest and tax (EBIT) | |||||||
Add: Operating lease cost | |||||||
Earnings before fixed charges and tax | |||||||
Interest expense, net | |||||||
Operating lease cost | |||||||
Fixed charges | |||||||
Solvency Ratio | |||||||
Fixed charge coverage1 | |||||||
Benchmarks | |||||||
Fixed Charge Coverage, Competitors2 | |||||||
Accenture PLC | |||||||
Adobe Inc. | |||||||
Automatic Data Processing Inc. | |||||||
International Business Machines Corp. | |||||||
Intuit Inc. | |||||||
Mastercard Inc. | |||||||
Microsoft Corp. | |||||||
Oracle Corp. | |||||||
PayPal Holdings Inc. | |||||||
Salesforce Inc. | |||||||
ServiceNow Inc. | |||||||
Fixed Charge Coverage, Sector | |||||||
Software & Services | |||||||
Fixed Charge Coverage, Industry | |||||||
Information Technology |
Based on: 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).
1 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= ÷ =
2 Click competitor name to see calculations.
Solvency ratio | Description | The company |
---|---|---|
Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Visa Inc. fixed charge coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |