Stock Analysis on Net

Visa Inc. (NYSE:V)

This company has been moved to the archive! The financial data has not been updated since April 27, 2023.

Analysis of Profitability Ratios

Microsoft Excel

Profitability Ratios (Summary)

Visa Inc., profitability ratios

Microsoft Excel
Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017
Return on Sales
Operating profit margin 64.19% 65.56% 64.46% 65.29% 62.86% 66.15%
Net profit margin 51.03% 51.07% 49.74% 52.57% 49.98% 36.49%
Return on Investment
Return on equity (ROE) 42.04% 32.75% 30.01% 34.83% 30.29% 20.45%
Return on assets (ROA) 17.49% 14.85% 13.43% 16.65% 14.88% 9.85%

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).

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Visa Inc. operating profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Visa Inc. net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Visa Inc. ROE improved from 2020 to 2021 and from 2021 to 2022.
ROA A profitability ratio calculated as net income divided by total assets. Visa Inc. ROA improved from 2020 to 2021 and from 2021 to 2022.

Operating Profit Margin

Visa Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel
Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017
Selected Financial Data (US$ in millions)
Operating income 18,813 15,804 14,081 15,001 12,954 12,144
Net revenues 29,310 24,105 21,846 22,977 20,609 18,358
Profitability Ratio
Operating profit margin1 64.19% 65.56% 64.46% 65.29% 62.86% 66.15%
Benchmarks
Operating Profit Margin, Competitors2
Accenture PLC 15.21% 15.08% 14.69% 14.59% 14.04%
Adobe Inc. 34.64% 36.76% 32.93% 29.25% 31.45%
International Business Machines Corp. 13.50% 11.97% 9.22% 13.67%
Intuit Inc. 20.20% 25.95% 28.34% 27.33% 25.10%
Microsoft Corp. 42.06% 41.59% 37.03% 34.14% 31.77%
Oracle Corp. 25.74% 37.58% 35.57% 34.26% 34.34%
Palo Alto Networks Inc. -3.43% -7.15% -5.25% -1.87% -5.68%
Salesforce Inc. 2.07% 2.14% 1.74% 4.03%
ServiceNow Inc. 4.90% 4.36% 4.40% 1.22%
Synopsys Inc. 22.87% 17.48% 16.83% 15.48% 11.54%
Operating Profit Margin, Sector
Software & Services 27.98% 28.89% 25.05% 24.34%
Operating Profit Margin, Industry
Information Technology 28.47% 28.76% 24.95% 25.42%

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).

1 2022 Calculation
Operating profit margin = 100 × Operating income ÷ Net revenues
= 100 × 18,813 ÷ 29,310 = 64.19%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Visa Inc. operating profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Net Profit Margin

Visa Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel
Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017
Selected Financial Data (US$ in millions)
Net income 14,957 12,311 10,866 12,080 10,301 6,699
Net revenues 29,310 24,105 21,846 22,977 20,609 18,358
Profitability Ratio
Net profit margin1 51.03% 51.07% 49.74% 52.57% 49.98% 36.49%
Benchmarks
Net Profit Margin, Competitors2
Accenture PLC 11.17% 11.69% 11.52% 11.06% 9.76%
Adobe Inc. 27.01% 30.55% 40.88% 26.42% 28.69%
International Business Machines Corp. 2.71% 10.01% 7.59% 12.22%
Intuit Inc. 16.23% 21.41% 23.78% 22.95% 20.31%
Microsoft Corp. 36.69% 36.45% 30.96% 31.18% 15.02%
Oracle Corp. 15.83% 33.96% 25.94% 28.05% 9.60%
Palo Alto Networks Inc. -4.85% -11.72% -7.83% -2.82% -6.51%
Salesforce Inc. 5.45% 19.16% 0.74% 8.36%
ServiceNow Inc. 4.49% 3.90% 2.62% 18.11%
Synopsys Inc. 19.38% 18.02% 18.03% 15.84% 13.86%
Net Profit Margin, Sector
Software & Services 22.24% 25.99% 20.85% 21.80%
Net Profit Margin, Industry
Information Technology 24.07% 25.56% 21.38% 22.17%

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).

1 2022 Calculation
Net profit margin = 100 × Net income ÷ Net revenues
= 100 × 14,957 ÷ 29,310 = 51.03%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Visa Inc. net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Return on Equity (ROE)

Visa Inc., ROE calculation, comparison to benchmarks

Microsoft Excel
Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017
Selected Financial Data (US$ in millions)
Net income 14,957 12,311 10,866 12,080 10,301 6,699
Equity 35,581 37,589 36,210 34,684 34,006 32,760
Profitability Ratio
ROE1 42.04% 32.75% 30.01% 34.83% 30.29% 20.45%
Benchmarks
ROE, Competitors2
Accenture PLC 31.11% 30.25% 30.05% 33.17% 39.17%
Adobe Inc. 33.85% 32.59% 39.66% 28.03% 27.67%
International Business Machines Corp. 7.47% 30.38% 27.14% 45.25%
Intuit Inc. 12.57% 20.89% 35.76% 41.53% 51.44%
Microsoft Corp. 43.68% 43.15% 37.43% 38.35% 20.03%
Oracle Corp. 262.43% 83.94% 50.87% 8.37%
Palo Alto Networks Inc. -127.14% -78.63% -24.23% -5.16% -15.30%
Salesforce Inc. 2.48% 9.81% 0.37% 7.11%
ServiceNow Inc. 6.46% 6.22% 4.18% 29.45%
Synopsys Inc. 17.85% 14.31% 13.54% 13.04% 12.43%
ROE, Sector
Software & Services 32.03% 37.53% 31.80% 36.15%
ROE, Industry
Information Technology 38.69% 42.56% 35.29% 36.68%

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).

1 2022 Calculation
ROE = 100 × Net income ÷ Equity
= 100 × 14,957 ÷ 35,581 = 42.04%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Visa Inc. ROE improved from 2020 to 2021 and from 2021 to 2022.

Return on Assets (ROA)

Visa Inc., ROA calculation, comparison to benchmarks

Microsoft Excel
Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017
Selected Financial Data (US$ in millions)
Net income 14,957 12,311 10,866 12,080 10,301 6,699
Total assets 85,501 82,896 80,919 72,574 69,225 67,977
Profitability Ratio
ROA1 17.49% 14.85% 13.43% 16.65% 14.88% 9.85%
Benchmarks
ROA, Competitors2
Accenture PLC 14.55% 13.68% 13.78% 16.04% 16.61%
Adobe Inc. 17.51% 17.70% 21.66% 14.22% 13.80%
International Business Machines Corp. 1.29% 4.35% 3.58% 6.20%
Intuit Inc. 7.45% 13.29% 16.70% 24.78% 23.39%
Microsoft Corp. 19.94% 18.36% 14.70% 13.69% 6.40%
Oracle Corp. 6.15% 10.48% 8.78% 10.20% 2.79%
Palo Alto Networks Inc. -2.18% -4.87% -2.95% -1.24% -2.54%
Salesforce Inc. 1.52% 6.14% 0.23% 3.61%
ServiceNow Inc. 2.44% 2.13% 1.36% 10.41%
Synopsys Inc. 10.45% 8.66% 8.27% 8.31% 7.04%
ROA, Sector
Software & Services 11.67% 12.60% 10.03% 10.89%
ROA, Industry
Information Technology 15.14% 15.65% 12.15% 12.80%

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).

1 2022 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 14,957 ÷ 85,501 = 17.49%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Visa Inc. ROA improved from 2020 to 2021 and from 2021 to 2022.