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Visa Financial Strength

: 7 (As of Jun. 2022)
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Visa has the Financial Strength Rank of 7.

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.

Visa's Interest Coverage for the quarter that ended in Jun. 2022 was 43.83. Visa's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.82. As of today, Visa's Altman Z-Score is 6.85.


Competitive Comparison

For the Credit Services subindustry, Visa'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.

   

Visa Financial Strength Distribution

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

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



Visa 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:

Visa's Interest Expense for the months ended in Jun. 2022 was $-111 Mil. Its Operating Income for the months ended in Jun. 2022 was $4,865 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $20,546 Mil.

Visa'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*4865/-111
=43.83

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

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

Visa'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
=(3249 + 20546) / 29100
=0.82

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.

Visa has a Z-score of 6.85, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 6.85 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.


Visa  (NYSE:V) 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.

Visa has the Financial Strength Rank of 7.


Visa Financial Strength Related Terms

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


Visa Business Description

Visa logo
Address
P.O. Box 8999, San Francisco, CA, USA, 94128-8999
Visa is the largest payment processor in the world. In fiscal 2021, it processed over $10 trillion in purchase transactions. Visa operates in over 200 countries and processes transactions in over 160 currencies. Its systems are capable of processing over 65,000 transactions per second.
Executives
List Teri director 2200 PENNSYLVANIA AVENUE SUITE 800W WASHINGTON DC 20037
Biggar Lynne officer: CHIEF MARKETING OFFICER 1271 AVENUE OF THE AMERICAS NEW YORK NY 10020-1300
Rottenberg Julie B officer: GENERAL COUNSEL C/O VISA INC POB 8999 SAN FRANCISCO CA 94128
Hoffmeister James H officer: GBL CORP CONTROLLER, CAO C/O VISA INC. PO BOX 8999 SAN FRANCISCO CA 94128
Mcinerney Ryan officer: PRESIDENT C/O VISA INC. PO BOX 8999 SAN FRANCISCO CA 94128
Prabhu Vasant M officer: VICE CHAIR, CFO C/O SAFEWAY INC 5918 STONERIDGE MALL ROAD PLEASANTON CA 94588
Mahon Tullier Kelly officer: V.CHAIR, CHF PPL & ADM OFF C/O VISA INC. PO BOX 8999 SAN FRANCISCO CA 94128
Kelly Alfred F Jr director, officer: CHAIRMAN & CEO AMERICAN EXPRESS COMPANY 200 VESEY STREET NEW YORK NY 10285
Fabara Paul D officer: CHIEF RISK OFFICER 200 VESEY STREET NEW YORK NY 10285
Taneja Rajat officer: PRESIDENT, TECHNOLOGY C/O ELECTRONIC ARTS INC. 209 REDWOOD SHORES PARKWAY, LEGAL DEPT. REDWOOD CITY CA 94065
Rendle Linda J director 1221 BROADWAY OAKLAND CA 94612
Laguarta Ramon director PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577
Morrison Denise M director METLIFE 200 PARK AVENUE NEW YORK NY 10166
Lundgren John F director 1000 STANLEY DRIVE NEW BRITAIN CT 06053
Hoffman Gary A director C/O VISA INC. PO BOX 8999 SAN FRANCISCO CA 94128

Visa Headlines

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