Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Visa Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-K (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31).
- Operating Profit Margin
- The operating profit margin data begins from the quarter ending December 31, 2016, showing values consistently above 60%. Initial values hover around the mid-60s, peaking near 66.64% in the first half of 2017. A gradual downward trend can be observed throughout the subsequent quarters, with occasional minor recoveries. By the first quarter of 2023, the margin settles near 63.46%, indicating a slight erosion over the period. This suggests a modest decline in operational efficiency or increased operating costs impacting the profitability rate.
- Net Profit Margin
- The net profit margin demonstrates an upward trajectory starting from 36.49% in late 2016 through mid-2017, reaching nearly 51-53% in the 2018 to 2019 period. This indicates improving net profitability potentially driven by enhanced revenue generation or cost controls. After 2019, the net margin stabilizes in the low-to-mid 50s percentage range, with minor fluctuations observed during 2020-2023. Despite some declines during the early pandemic period in 2020, the margin quickly recovers and maintains stability slightly above 50% thereafter.
- Return on Equity (ROE)
- ROE displays a strong upward momentum beginning at 20.45% in late 2016 and consistently rising, reaching above 40% by the quarters ending in 2022 and early 2023. The progression is relatively steady, with peak values over 41% seen in late 2022. This reflects enhanced profitability relative to shareholder equity, likely driven by improved net incomes or more efficient equity use. The notable increase over time suggests strengthening return generation for shareholders.
- Return on Assets (ROA)
- The ROA similarly trends upward from just under 10% in late 2016, climbing to above 17% by the period ending in early 2023. There is a consistent improvement over the periods, with only minor declines during 2020, coinciding with global economic disruptions. This ratio's increase indicates more effective utilization of the company's assets to generate profit over the analyzed time frame. The rise in ROA corroborates strengthening operational performance and asset management.
Return on Sales
Return on Investment
Operating Profit Margin
Visa Inc., operating profit margin calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Operating income | 5,336) | 5,090) | 5,087) | 4,148) | 4,802) | 4,776) | 4,315) | 4,064) | 3,581) | 3,844) | 3,142) | 2,999) | 3,924) | 4,016) | 3,735) | 3,908) | 3,641) | 3,717) | 3,406) | 2,885) | 3,336) | 3,327) | 3,212) | 3,024) | 2,808) | 3,100) | ||||||||
| Net revenues | 7,985) | 7,936) | 7,787) | 7,275) | 7,189) | 7,059) | 6,559) | 6,130) | 5,729) | 5,687) | 5,101) | 4,837) | 5,854) | 6,054) | 6,137) | 5,840) | 5,494) | 5,506) | 5,434) | 5,240) | 5,073) | 4,862) | 4,855) | 4,565) | 4,477) | 4,461) | ||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| Operating profit margin1 | 63.46% | 63.36% | 64.19% | 64.24% | 66.66% | 65.69% | 65.56% | 64.60% | 63.53% | 64.76% | 64.46% | 64.13% | 65.24% | 65.04% | 65.29% | 65.87% | 62.97% | 62.79% | 62.86% | 63.70% | 66.64% | 65.95% | 66.15% | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||||||
| Accenture PLC | 14.90% | 15.27% | 15.21% | 15.20% | 15.12% | 15.19% | 15.08% | 15.03% | 14.89% | 14.84% | 14.69% | 14.68% | 14.66% | 14.65% | 14.59% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Adobe Inc. | 33.64% | 33.91% | 34.64% | 35.45% | 36.25% | 36.72% | 36.76% | 36.53% | 35.75% | 34.75% | 32.93% | 32.10% | 31.36% | 30.10% | 29.25% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Cadence Design Systems Inc. | 28.78% | 29.26% | 30.15% | 30.81% | 30.20% | 28.35% | 26.07% | 25.83% | 25.72% | 25.35% | 24.06% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| CrowdStrike Holdings Inc. | -7.41% | -8.25% | -9.82% | -10.49% | -10.43% | -10.14% | -10.58% | -14.16% | -18.68% | -25.36% | -30.34% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| International Business Machines Corp. | 13.88% | 13.49% | 13.50% | 12.92% | 12.77% | 12.30% | 11.97% | 9.12% | 10.13% | 10.39% | 9.22% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Intuit Inc. | 19.48% | 18.41% | 20.20% | 23.68% | 22.49% | 24.10% | 25.95% | 29.04% | 26.95% | 30.30% | 28.34% | 22.46% | 26.81% | 27.03% | 27.33% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Microsoft Corp. | 40.58% | 41.69% | 42.06% | 42.56% | 42.52% | 42.14% | 41.59% | 40.15% | 39.24% | 38.17% | 37.03% | 37.46% | 36.74% | 35.20% | 34.14% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Oracle Corp. | 30.42% | 22.92% | 25.74% | 26.22% | 26.62% | 37.78% | 37.58% | 37.74% | 37.13% | 36.29% | 35.57% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Palantir Technologies Inc. | -3.22% | -5.93% | -8.46% | -11.05% | -13.30% | -20.43% | -26.66% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Palo Alto Networks Inc. | 0.37% | -1.56% | -3.43% | -5.12% | -6.74% | -7.51% | -7.15% | -6.56% | -5.49% | -4.79% | -5.25% | -5.24% | -4.27% | -2.45% | -1.87% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Salesforce Inc. | 0.26% | 0.77% | 2.07% | 3.67% | 4.69% | 4.25% | 2.14% | 1.11% | 0.35% | -0.29% | 1.74% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| ServiceNow Inc. | 6.32% | 5.41% | 4.90% | 3.40% | 3.30% | 3.95% | 4.36% | 4.34% | 4.55% | 5.10% | 4.40% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Synopsys Inc. | 18.81% | 20.70% | 22.87% | 22.93% | 23.18% | 20.72% | 17.48% | 18.17% | 18.81% | 17.82% | 16.83% | 15.77% | 13.85% | 13.64% | 15.48% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Workday Inc. | -3.24% | -2.80% | -2.27% | -1.81% | -2.71% | -3.18% | -5.76% | -7.72% | -10.45% | -13.70% | -13.85% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-K (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31).
1 Q2 2023 Calculation
Operating profit margin = 100
× (Operating incomeQ2 2023
+ Operating incomeQ1 2023
+ Operating incomeQ4 2022
+ Operating incomeQ3 2022)
÷ (Net revenuesQ2 2023
+ Net revenuesQ1 2023
+ Net revenuesQ4 2022
+ Net revenuesQ3 2022)
= 100 × (5,336 + 5,090 + 5,087 + 4,148)
÷ (7,985 + 7,936 + 7,787 + 7,275)
= 63.46%
2 Click competitor name to see calculations.
- Operating Income Trend
- The operating income demonstrated a generally upward trajectory over the observed period, with some fluctuations. Starting at 3,100 million USD in December 2016, it experienced minor decreases and increases but reached a peak of 5,336 million USD by March 2023. Notably, there was a decline during the first half of 2020, likely influenced by external factors, followed by a recovery and significant growth through 2021 and into 2023.
- Net Revenues Trend
- Net revenues showed a consistent growth pattern across the quarters. Beginning at 4,461 million USD in December 2016, revenues increased steadily to 7,985 million USD by March 2023. Despite some slight decreases around early 2020, mirroring the pattern observed in operating income, the overall trend remained positive with robust expansion throughout the latter part of the timeline.
- Operating Profit Margin Analysis
- The operating profit margin remained relatively stable throughout the period, fluctuating mostly between approximately 62% and 66%. The margin maintained a high level of profitability, with no dramatic downward or upward shifts. Minor declines occurred around 2018 and early 2023, but the margin consistently hovered in the mid-60% range, indicating efficient cost management relative to revenue.
- Summary of Insights
- The data reveals sustained growth in both operating income and net revenues, signifying expanding business scale and effective revenue generation. Despite a notable downturn during the first half of 2020, likely due to challenging economic conditions, the subsequent recovery was strong and led to record-high income and revenue levels by early 2023. The stable operating profit margin throughout this period underscores consistent operational efficiency and profitability management.
Net Profit Margin
Visa Inc., net profit margin calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Net income | 4,257) | 4,179) | 3,940) | 3,411) | 3,647) | 3,959) | 3,584) | 2,575) | 3,026) | 3,126) | 2,137) | 2,373) | 3,084) | 3,272) | 3,025) | 3,101) | 2,977) | 2,977) | 2,845) | 2,329) | 2,605) | 2,522) | 2,140) | 2,059) | 430) | 2,070) | ||||||||
| Net revenues | 7,985) | 7,936) | 7,787) | 7,275) | 7,189) | 7,059) | 6,559) | 6,130) | 5,729) | 5,687) | 5,101) | 4,837) | 5,854) | 6,054) | 6,137) | 5,840) | 5,494) | 5,506) | 5,434) | 5,240) | 5,073) | 4,862) | 4,855) | 4,565) | 4,477) | 4,461) | ||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| Net profit margin1 | 50.95% | 50.28% | 51.03% | 51.99% | 51.10% | 51.59% | 51.07% | 47.97% | 49.93% | 49.91% | 49.74% | 51.37% | 52.26% | 52.60% | 52.57% | 53.43% | 51.34% | 50.61% | 49.98% | 47.91% | 48.18% | 38.12% | 36.49% | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||||||
| Accenture PLC | 10.99% | 11.30% | 11.17% | 11.12% | 11.27% | 11.53% | 11.69% | 12.05% | 11.95% | 11.74% | 11.52% | 11.11% | 11.13% | 11.06% | 11.06% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Adobe Inc. | 26.34% | 26.32% | 27.01% | 28.00% | 29.29% | 29.90% | 30.55% | 38.67% | 38.79% | 40.68% | 40.88% | 31.05% | 30.71% | 27.72% | 26.42% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Cadence Design Systems Inc. | 23.41% | 23.23% | 23.84% | 22.86% | 23.61% | 23.59% | 23.29% | 23.30% | 23.47% | 23.34% | 22.02% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| CrowdStrike Holdings Inc. | -9.45% | -11.08% | -16.18% | -16.48% | -16.34% | -15.86% | -10.59% | -13.40% | -17.27% | -23.97% | -29.45% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| International Business Machines Corp. | 3.34% | 3.03% | 2.71% | 2.08% | 9.36% | 9.46% | 10.01% | 7.81% | 8.16% | 7.76% | 7.59% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Intuit Inc. | 14.22% | 14.10% | 16.23% | 19.44% | 19.03% | 20.28% | 21.41% | 23.93% | 22.64% | 25.10% | 23.78% | 19.50% | 22.88% | 22.79% | 22.95% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Microsoft Corp. | 33.05% | 34.37% | 36.69% | 37.63% | 38.50% | 38.51% | 36.45% | 35.02% | 33.47% | 32.29% | 30.96% | 33.36% | 33.02% | 31.66% | 31.18% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Oracle Corp. | 19.09% | 13.15% | 15.83% | 18.08% | 24.79% | 34.16% | 33.96% | 32.32% | 26.34% | 26.13% | 25.94% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Palantir Technologies Inc. | -2.35% | -12.87% | -19.61% | -30.64% | -30.90% | -30.25% | -33.75% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Palo Alto Networks Inc. | 0.56% | -2.46% | -4.85% | -7.54% | -9.50% | -11.20% | -11.72% | -11.00% | -9.73% | -8.36% | -7.83% | -7.01% | -5.58% | -3.42% | -2.82% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Salesforce Inc. | 1.83% | 3.59% | 5.45% | 6.96% | 9.99% | 19.87% | 19.16% | 17.53% | 12.21% | -0.92% | 0.74% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| ServiceNow Inc. | 17.76% | 5.25% | 4.49% | 2.90% | 2.79% | 3.56% | 3.90% | 3.99% | 3.30% | 3.15% | 2.62% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Synopsys Inc. | 17.41% | 18.22% | 19.38% | 20.86% | 21.19% | 20.18% | 18.02% | 18.48% | 20.27% | 18.91% | 18.03% | 17.88% | 13.96% | 14.31% | 15.84% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Workday Inc. | -3.46% | -0.49% | 0.57% | 0.63% | -0.79% | -3.81% | -6.54% | -8.14% | -10.77% | -13.68% | -13.25% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-K (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31).
1 Q2 2023 Calculation
Net profit margin = 100
× (Net incomeQ2 2023
+ Net incomeQ1 2023
+ Net incomeQ4 2022
+ Net incomeQ3 2022)
÷ (Net revenuesQ2 2023
+ Net revenuesQ1 2023
+ Net revenuesQ4 2022
+ Net revenuesQ3 2022)
= 100 × (4,257 + 4,179 + 3,940 + 3,411)
÷ (7,985 + 7,936 + 7,787 + 7,275)
= 50.95%
2 Click competitor name to see calculations.
- Net Income Trends
- The net income figures exhibit volatility across the observed quarters. Starting from a low point of 430 million in the first quarter of 2017, net income rose sharply soon after and reached a peak of 3272 million by the end of 2019. Following this peak, there was a notable decline in 2020, likely influenced by external factors impacting the overall economy, with net income dropping to as low as 2137 million in the third quarter of 2020. Recovery is visible in subsequent periods, with net income increasing again to over 3500 million from the fourth quarter of 2021 onward, reaching the highest value of 4257 million by the first quarter of 2023. This indicates a general rebound and growth trajectory after the 2020 dip.
- Net Revenues Pattern
- Net revenues show an overall upward trend over the time period, starting near 4461 million at the end of 2016 and steadily increasing to values above 7900 million by early 2023. The growth is relatively consistent, with minor fluctuations around 2019 and a softer period in 2020, where revenues briefly declined to approximately 4837 million in the first quarter of 2020. However, subsequent quarters marked a recovery followed by continued expansion, with revenues crossing 7000 million by late 2021 and maintaining an upward pattern through early 2023.
- Net Profit Margin Analysis
- Net profit margins were not reported in the initial quarters but once available, they display a high relative level, consistently sitting around or above 50% across most quarters. Margins peaked at 53.43% at one point towards the end of 2019 and then showed a slight downward trend into 2020, bottoming near 47.97% in the third quarter of 2021. Despite this decline, margins recovered somewhat, stabilizing just above 50% by 2023. This steadiness indicates sustained profitability efficiency even during periods of net income and revenue fluctuations.
- Overall Insights
- The data reveal a pattern of steady revenue growth accompanied by high profit margins, suggesting effective cost management and operational efficiency. The variability in net income during 2020 highlights sensitivity to economic or market disruptions, yet recovery afterward demonstrates resilience. The maintenance of profit margins around 50% reflects strong pricing power or cost control, contributing to robust earnings even when revenues faced headwinds. These trends collectively suggest a financially stable entity with solid growth and profitability metrics over the longer term.
Return on Equity (ROE)
Visa Inc., ROE calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Net income | 4,257) | 4,179) | 3,940) | 3,411) | 3,647) | 3,959) | 3,584) | 2,575) | 3,026) | 3,126) | 2,137) | 2,373) | 3,084) | 3,272) | 3,025) | 3,101) | 2,977) | 2,977) | 2,845) | 2,329) | 2,605) | 2,522) | 2,140) | 2,059) | 430) | 2,070) | ||||||||
| Equity | 38,565) | 36,924) | 35,581) | 35,483) | 35,989) | 36,194) | 37,589) | 37,790) | 37,696) | 37,679) | 36,210) | 35,524) | 34,585) | 35,270) | 34,684) | 34,995) | 34,275) | 34,095) | 34,006) | 33,318) | 34,103) | 33,401) | 32,760) | 31,944) | 30,783) | 31,726) | ||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| ROE1 | 40.94% | 41.10% | 42.04% | 41.15% | 38.25% | 36.32% | 32.75% | 28.75% | 28.28% | 28.45% | 30.01% | 33.09% | 36.09% | 35.09% | 34.83% | 34.00% | 32.47% | 31.55% | 30.29% | 28.80% | 27.35% | 21.41% | 20.45% | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||||||||||
| Accenture PLC | 29.20% | 30.69% | 31.11% | 30.99% | 31.09% | 30.45% | 30.25% | 29.87% | 29.81% | 29.33% | 30.05% | 30.91% | 32.13% | 32.05% | 33.17% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Adobe Inc. | 32.71% | 33.35% | 33.85% | 33.49% | 34.96% | 35.04% | 32.59% | 40.51% | 40.30% | 41.09% | 39.66% | 32.97% | 34.00% | 30.89% | 28.03% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Cadence Design Systems Inc. | 30.59% | 29.09% | 30.93% | 28.99% | 29.53% | 26.96% | 25.39% | 26.34% | 26.96% | 25.72% | 23.69% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| CrowdStrike Holdings Inc. | -14.14% | -16.44% | -22.89% | -22.34% | -20.56% | -18.66% | -10.64% | -12.54% | -14.29% | -17.95% | -19.10% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| International Business Machines Corp. | 9.12% | 8.48% | 7.47% | 6.29% | 28.79% | 28.98% | 30.38% | 21.44% | 24.31% | 25.11% | 27.14% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Intuit Inc. | 12.28% | 11.69% | 12.57% | 14.75% | 13.93% | 21.49% | 20.89% | 21.37% | 19.70% | 37.50% | 35.76% | 28.21% | 43.76% | 43.49% | 41.53% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Microsoft Corp. | 36.83% | 40.21% | 43.68% | 44.47% | 44.49% | 44.67% | 43.15% | 41.65% | 39.40% | 38.49% | 37.43% | 40.41% | 40.25% | 38.75% | 38.35% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Oracle Corp. | — | — | — | — | — | — | 262.43% | 144.16% | 131.11% | 107.99% | 83.94% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Palantir Technologies Inc. | -1.63% | -9.38% | -14.57% | -23.50% | -22.95% | -21.07% | -22.71% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Palo Alto Networks Inc. | 4.71% | -28.23% | -127.14% | -115.40% | -391.77% | -98.34% | -78.63% | -43.97% | -35.50% | -40.11% | -24.23% | -30.74% | -10.84% | -6.81% | -5.16% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Salesforce Inc. | 0.89% | 1.70% | 2.48% | 3.05% | 4.24% | 10.44% | 9.81% | 8.82% | 6.16% | -0.48% | 0.37% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| ServiceNow Inc. | 20.56% | 7.14% | 6.46% | 4.44% | 4.39% | 5.58% | 6.22% | 6.24% | 5.21% | 5.01% | 4.18% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Synopsys Inc. | 15.79% | 16.72% | 17.85% | 18.42% | 18.13% | 16.87% | 14.31% | 14.63% | 15.88% | 14.80% | 13.54% | 13.66% | 11.10% | 11.64% | 13.04% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Workday Inc. | -3.83% | -0.55% | 0.65% | 0.73% | -0.95% | -5.01% | -8.62% | -11.00% | -15.15% | -20.09% | -19.33% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-K (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31).
1 Q2 2023 Calculation
ROE = 100
× (Net incomeQ2 2023
+ Net incomeQ1 2023
+ Net incomeQ4 2022
+ Net incomeQ3 2022)
÷ Equity
= 100 × (4,257 + 4,179 + 3,940 + 3,411)
÷ 38,565 = 40.94%
2 Click competitor name to see calculations.
- Net Income Trend
- The net income exhibits notable quarterly fluctuations over the analyzed period. Initially, it shows a significant dip in the first quarter of 2017, followed by a recovery and gradual growth throughout 2017 and 2018. The values peak in late 2018 and early 2019, maintaining a stable performance through 2019.
- Beginning in the first quarter of 2020, a sharp decline is evident, continuing through the mid-2020 quarters, reflecting potential external impacts on operations. However, from the latter half of 2020 onwards, net income rebounded markedly, surpassing previous peak levels by the end of 2021 and sustaining high values into early 2023. Overall, the trend indicates resilience and recovery after a trough in early 2020, with growth momentum strengthening in recent periods.
- Equity Trend
- Equity values maintain a relatively steady increase over the overall timeframe. Although minor fluctuations are noticeable, the general direction is upward, indicating consistent growth in shareholder equity. The equity base expands gradually through 2017 to 2019, experiences small declines or stabilization in some quarters, and then resumes growth from 2020 onward.
- This progression suggests steady capital retention and accumulation, supporting the company's capacity to fund operations or investments internally. The continual increase in equity up to early 2023 points to financial stability and strength in net asset value.
- Return on Equity (ROE) Analysis
- ROE demonstrates an overall rising trend starting from late 2017, progressing from just above 20% to values exceeding 40% by the end of the period. This indicates improved profitability relative to equity, highlighting enhanced efficiency in generating profits from shareholders' investments.
- Despite minor fluctuations, the upward trajectory in ROE suggests strong management effectiveness and operational performance, especially notable given the temporary drop in net income during 2020. The ability to sustain high ROE levels during recovery further underscores robustness in financial returns.
- Summary Insights
- The financial data reveal a company experiencing cyclical performance variations with resilience through downturn periods, particularly observable in the sharp net income decline and subsequent rapid recovery around 2020. Persistent equity growth combined with increasing ROE reflects improving profitability and sound financial management. These patterns point to a company effectively navigating challenges while enhancing shareholder value over the analyzed quarters.
Return on Assets (ROA)
Visa Inc., ROA calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Net income | 4,257) | 4,179) | 3,940) | 3,411) | 3,647) | 3,959) | 3,584) | 2,575) | 3,026) | 3,126) | 2,137) | 2,373) | 3,084) | 3,272) | 3,025) | 3,101) | 2,977) | 2,977) | 2,845) | 2,329) | 2,605) | 2,522) | 2,140) | 2,059) | 430) | 2,070) | ||||||||
| Total assets | 86,755) | 85,387) | 85,501) | 85,410) | 81,808) | 81,929) | 82,896) | 82,671) | 80,195) | 80,426) | 80,919) | 77,884) | 72,820) | 74,781) | 72,574) | 70,249) | 69,865) | 71,655) | 69,225) | 68,175) | 69,042) | 67,154) | 67,977) | 64,000) | 63,227) | 63,370) | ||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| ROA1 | 18.20% | 17.77% | 17.49% | 17.10% | 16.83% | 16.04% | 14.85% | 13.14% | 13.30% | 13.33% | 13.43% | 15.09% | 17.14% | 16.55% | 16.65% | 16.94% | 15.93% | 15.01% | 14.88% | 14.08% | 13.51% | 10.65% | 9.85% | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||||||||||
| Accenture PLC | 14.54% | 14.97% | 14.55% | 14.38% | 14.42% | 14.19% | 13.68% | 13.72% | 13.65% | 13.72% | 13.78% | 14.12% | 14.84% | 14.66% | 16.04% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Adobe Inc. | 17.44% | 17.76% | 17.51% | 18.00% | 18.57% | 18.58% | 17.70% | 22.33% | 21.82% | 22.28% | 21.66% | 17.23% | 17.13% | 15.24% | 14.22% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Cadence Design Systems Inc. | 17.26% | 16.54% | 16.53% | 15.80% | 17.77% | 16.93% | 15.87% | 16.45% | 16.46% | 16.35% | 14.95% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| CrowdStrike Holdings Inc. | -4.17% | -4.73% | -6.49% | -6.42% | -5.93% | -5.50% | -3.39% | -5.83% | -6.99% | -8.89% | -10.09% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| International Business Machines Corp. | 1.53% | 1.37% | 1.29% | 1.00% | 4.38% | 4.14% | 4.35% | 3.30% | 3.63% | 3.61% | 3.58% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Intuit Inc. | 7.15% | 6.93% | 7.45% | 8.77% | 8.26% | 14.07% | 13.29% | 13.50% | 11.97% | 20.26% | 16.70% | 17.22% | 24.34% | 25.55% | 24.78% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Microsoft Corp. | 18.50% | 19.40% | 19.94% | 21.03% | 20.91% | 20.24% | 18.36% | 18.13% | 16.87% | 15.78% | 14.70% | 16.21% | 15.67% | 14.73% | 13.69% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Oracle Corp. | 6.85% | 4.46% | 6.15% | 6.96% | 9.60% | 11.35% | 10.48% | 10.86% | 9.44% | 9.03% | 8.78% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Palantir Technologies Inc. | -1.21% | -6.94% | -10.80% | -16.90% | -16.42% | -15.01% | -16.02% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Palo Alto Networks Inc. | 0.26% | -1.14% | -2.18% | -3.51% | -4.44% | -4.89% | -4.87% | -4.59% | -3.88% | -3.43% | -2.95% | -3.52% | -2.43% | -1.51% | -1.24% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Salesforce Inc. | 0.57% | 1.08% | 1.52% | 1.99% | 2.65% | 6.85% | 6.14% | 6.01% | 4.10% | -0.31% | 0.23% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| ServiceNow Inc. | 9.54% | 2.94% | 2.44% | 1.81% | 1.66% | 2.03% | 2.13% | 2.33% | 1.86% | 1.73% | 1.36% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Synopsys Inc. | 9.40% | 9.85% | 10.45% | 11.07% | 10.95% | 10.21% | 8.66% | 8.88% | 9.69% | 9.02% | 8.27% | 8.19% | 6.48% | 6.70% | 8.31% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Workday Inc. | -1.48% | -0.21% | 0.28% | 0.33% | -0.40% | -1.98% | -3.24% | -4.32% | -5.73% | -7.23% | -7.05% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-K (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31).
1 Q2 2023 Calculation
ROA = 100
× (Net incomeQ2 2023
+ Net incomeQ1 2023
+ Net incomeQ4 2022
+ Net incomeQ3 2022)
÷ Total assets
= 100 × (4,257 + 4,179 + 3,940 + 3,411)
÷ 86,755 = 18.20%
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends and patterns over the observed periods.
- Net Income
- The net income demonstrates a generally positive trajectory with fluctuations correlated to specific quarters. Initially, in December 2016, net income was 2,070 million USD, followed by a notable dip to 430 million USD in March 2017. Subsequently, a steady increase is observed with occasional minor declines, reaching a peak of 4,257 million USD in March 2023. The data shows resilience and growth, particularly strong from late 2019 onward, despite some temporary decreases in mid-2020 likely attributable to external factors impacting operations.
- Total Assets
- Total assets exhibit a sustained upward trend throughout the period. Starting at 63,370 million USD in December 2016, assets generally increased with some mild volatility. A slight decrease is noticed in certain quarters such as December 2018 through early 2019 and a small dip in 2022; however, the overall growth culminates at 86,755 million USD by March 2023. This reflects ongoing asset accumulation, indicating expansion and investment activities.
- Return on Assets (ROA)
- ROA data, available from June 2017 onward, indicates a clear improvement in profitability relative to assets. Initial values were around 9.85% in June 2017, progressively rising to over 18% by March 2023. The upward trend suggests increasing efficiency in generating income from the asset base. Notably, ROA peaked around 17-18% post-2021, with slight fluctuations but maintaining an overall positive slope.
In summary, the company’s financial performance reflects consistent growth in net income and total assets, alongside improving asset efficiency as shown by ROA. Despite some short-term volatility, the longer-term trends illustrate strengthening profitability and asset management capacity.