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Mastercard ROA %

: 28.13% (As of Mar. 2022)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Mastercard's annualized Net Income for the quarter that ended in Mar. 2022 was $10,524 Mil. Mastercard's average Total Assets over the quarter that ended in Mar. 2022 was $37,416 Mil. Therefore, Mastercard's annualized ROA % for the quarter that ended in Mar. 2022 was 28.13%.

The historical rank and industry rank for Mastercard's ROA % or its related term are showing as below:

MA' s ROA % Range Over the Past 10 Years
Min: 19.57   Med: 23.98   Max: 30.01
Current: 26.37

During the past 13 years, Mastercard's highest ROA % was 30.01%. The lowest was 19.57%. And the median was 23.98%.

MA's ROA % is ranked better than
97.81% of 549 companies
in the Credit Services industry
Industry Median: 1.77 vs MA: 26.37

Mastercard ROA % Historical Data

The historical data trend for Mastercard's ROA % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Mastercard Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.57 25.37 30.01 20.41 24.38

Mastercard Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
ROA % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.39 23.71 27.46 26.04 28.13

Competitive Comparison

For the Credit Services subindustry, Mastercard's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Mastercard ROA % Distribution

For the Credit Services industry and Financial Services sector, Mastercard's ROA % distribution charts can be found below:

* The bar in red indicates where Mastercard's ROA % falls into.



Mastercard ROA % Calculation

Mastercard's annualized ROA % for the fiscal year that ended in Dec. 2021 is calculated as:

ROA %=Net Income (A: Dec. 2021 )/( (Total Assets (A: Dec. 2020 )+Total Assets (A: Dec. 2021 ))/ count )
=8687/( (33584+37669)/ 2 )
=8687/35626.5
=24.38 %

Mastercard's annualized ROA % for the quarter that ended in Mar. 2022 is calculated as:

ROA %=Net Income (Q: Mar. 2022 )/( (Total Assets (Q: Dec. 2021 )+Total Assets (Q: Mar. 2022 ))/ count )
=10524/( (37669+37163)/ 2 )
=10524/37416
=28.13 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Mar. 2022) net income data. ROA % is displayed in the 30-year financial page.


Mastercard  (NYSE:MA) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Mar. 2022 )
=Net Income/Total Assets
=10524/37416
=(Net Income / Revenue)*(Revenue / Total Assets)
=(10524 / 20668)*(20668 / 37416)
=Net Margin %*Asset Turnover
=50.92 %*0.5524
=28.13 %

Note: The Net Income data used here is four times the quarterly (Mar. 2022) net income data. The Revenue data used here is four times the quarterly (Mar. 2022) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Mastercard ROA % Related Terms

Thank you for viewing the detailed overview of Mastercard's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


Mastercard Business Description

Mastercard logo
Industry
Financial Services » Credit Services NAICS : 522320 SIC : 7389
Address
2000 Purchase Street, Purchase, NY, USA, 10577
Mastercard is the second- largest payment processor in the world, having processed close to $6 trillion in purchase transactions during 2021. Mastercard operates in over 200 countries and processes transactions in over 150 currencies.
Executives
Mastercard Foundation 10 percent owner 250 YONGE STREET SUITE 2400 TORONTO A6 M5B 2L7
Bhalla Ajay officer: President Cyber & Intelligence 2000 PURCHASE STREET PURCHASE NY 10577
Haythornthwaite Richard director MASTERCARD INTERNATIONAL 2000 PURCHASE STREET PURCHASE NY 10577-2509
Reyes Jose Octavio director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: REYES JOSE OCTAVIO a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Banga Ajay director, officer: Chief Executive Officer C/O CITIGROUP INC. CORPORATE LAW DEPT. 425 PARK AVENUE 2ND FLOOR NEW YORK NY 10043
Fraccaro Michael officer: Chief People Officer 2000 PURCHASE STREET PURCHASE NY 10577
Stanton Kevin officer: Chief Transformation Officer 2000 PURCHASE STREET PURCHASE NY 10577
Arkell Sandra A officer: Controller 3005 HIGHLAND PARKWAY SUITE 200 DOWNERS GROVE IL 60515
Vosburg Craig officer: President, North America 2000 PURCHASE STREET PURCHASE NY 10577
Sachin J. Mehra officer: Chief Financial Officer HESS CORPORATION 1185 AVENUE OF THE AMERICAS NEW YORK NY 10036
Madabhushi Venkata R officer: Chief Marketing Officer WELLPOINT, INC. 120 MONUMENT CIRCLE INDIANAPOLIS IN 46204
Matsumoto Oki director C/O MONEX GROUP, INC. 1-11-1, MARUNOUCHI, CHIYODA-KU TOKYO M0 100-6219
Cairns Ann officer: Vice Chairman 2000 PURCHASE STREET PURCHASE NY 10577
Moon Youngme E director 75 NETWORK DRIVE BURLINGTON MA 01803
Genachowski Julius director C/O INTERACTIVECORP 152 WEST 57TH STREET NEW YORK NY 10019

Mastercard Headlines

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