GURUFOCUS.COM » STOCK LIST » USA » NYSE » Mastercard Inc (NYSE:MA) » Definitions » Financial Strength
Switch to:

Mastercard Financial Strength

: 6 (As of Jun. 2022)
View and export this data going back to 2006. Start your Free Trial

Mastercard has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Mastercard's Interest Coverage for the quarter that ended in Jun. 2022 was 27.95. Mastercard's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.66. As of today, Mastercard's Altman Z-Score is 10.49.


Competitive Comparison

For the Credit Services subindustry, Mastercard's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

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

* The bar in red indicates where Mastercard's Financial Strength falls into.



Mastercard Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Mastercard's Interest Expense for the months ended in Jun. 2022 was $-114 Mil. Its Operating Income for the months ended in Jun. 2022 was $3,186 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $13,746 Mil.

Mastercard's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*3186/-114
=27.95

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Mastercard's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(735 + 13746) / 21988
=0.66

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Mastercard has a Z-score of 10.49, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 10.49 is strong.

* 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.


Mastercard  (NYSE:MA) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Mastercard has the Financial Strength Rank of 6.


Mastercard Financial Strength Related Terms

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


Mastercard Business Description

Mastercard logo
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
Malhotra Raghuvir officer: Co-President, Intl Markets 2000 PURCHASE STREET PURCHASE NY 10577
Ling Hai officer: Co-President, Intl Markets 2000 PURCHASE STREET PURCHASE NY 10577
Talwar Harit director 2500 LAKE COOK ROAD RIVERWOODS IL 60015
Bracher Candido director 2000 PURCHASE STREET PURCHASE NY 10577
Verma Richard R. officer: General Counsel 100 E. PRATT STREET BALTIMORE MD 21202
Kirkpatrick Linda Pistecchia officer: President, North America 2000 PURCHASE STREET PURCHASE NY 10577
Seshadri Raj officer: President, Data & Services 880 CARILLON PARKWAY ST. PETERSBURG FL 33716
Moon Youngme E director 75 NETWORK DRIVE BURLINGTON MA 01803
Uggla Lance Darrell Gordon director C/O MARKIT LTD, 4TH FL, ROPEMAKER PLACE 25 ROPEMAKER STREET LONDON X0 EC2Y 9LY
Madabhushi Venkata R officer: Chief Marketing Officer WELLPOINT, INC. 120 MONUMENT CIRCLE INDIANAPOLIS IN 46204
Stanton Kevin officer: Chief Services Officer 2000 PURCHASE STREET PURCHASE NY 10577
Bhalla Ajay officer: President Cyber & Intelligence 2000 PURCHASE STREET PURCHASE NY 10577
Froman Michael B. G. officer: V Chair & Pres Strategic Grwth 2000 PURCHASE STREET PURCHASE NY 10577
Sachin J. Mehra officer: Chief Financial Officer HESS CORPORATION 1185 AVENUE OF THE AMERICAS NEW YORK NY 10036
Miebach Michael officer: Chief Product Officer 2000 PURCHASE STREET PURCHASE NY 10577

Mastercard Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)