The review of Net Profit Margin witnessed a fluctuating trend. The Net Profit Margin moved from 48.08% in 2019 to 44.61% in 2023.
The average EBIT Margin for the period under analysis was 56.10%, with 2020 and 2021 performing the worst and best,
In the current year, Mastercard was able to cover its interest liabilities 25.19 times in the current year- compared to 2019 when it was 44.44 times.
The Asset turnover stood at 0.63 times in 2023 from 0.65 in 2019, implying a high performance on Assets of the business in relation to revenue.
Profitability
The revenue of Mastercard has fluctuated year on year. The revenue decreased by a negative -9.37% between 2019 and 2020 and a further 17.76% increase was recorded between 2021 and 2022. There also occurred an increase of 12.87% between 2022 and 2023 (the current period).
Mastercard’s performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks poor, as current ratio was stagnant from 1.7:1 to 1.17:1 on the last year. Which implies that the company [does not have] enough assets to settle its current liabilities.
Capital Structure
Mastercard is both equity and debt financed.
The debt-to-equity (D/E) ratio has been falling year on year. The gearing position of the company appears to be low as it stood at 216% in the current year.
