Mastercard (Mastercard) Gross Margin %

: 76.66% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Mastercard's Gross Profit for the three months ended in Dec. 2023 was $5,020 Mil. Mastercard's Revenue for the three months ended in Dec. 2023 was $6,548 Mil. Therefore, Mastercard's Gross Margin % for the quarter that ended in Dec. 2023 was 76.66%.

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

MA' s Gross Margin % Range Over the Past 10 Years
Min: 75.25 Med: 78.18 Max: 79.35
Current: 76.01

During the past 13 years, the highest Gross Margin % of Mastercard was 79.35%. The lowest was 75.25%. And the median was 78.18%.

MA's Gross Margin % is ranked better than
74.79% of 357 companies
in the Credit Services industry
Industry Median: 54.12 vs MA: 76.01

Mastercard had a gross margin of 76.66% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Mastercard was -0.70% per year.

Mastercard Gross Margin % Historical Data

The historical data trend for Mastercard's Gross Margin % 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

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

79.05

75.25

76.23

76.33

76.01

Mastercard Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Take a 7-Day Free Trial															76.26	75.19	76.15	75.92	76.66

Competitive Comparison

For the Credit Services subindustry, Mastercard's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution

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

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

Mastercard Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Mastercard's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	19076	/	25098
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(25098 - 6022)	/	25098
	=	76.01 %

Mastercard's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	5020	/	6548
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(6548 - 1528)	/	6548
	=	76.66 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Mastercard (NYSE:MA) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Mastercard had a gross margin of 76.66% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Mastercard Gross Margin % Related Terms

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Mastercard (Mastercard) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Mastercard Inc (NYSE:MA) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

MA:Peru MA:Mexico 1MA:Italy M4Id:UK 0R2Z:UK M4I0:Germany M4I:Germany M4I:Germany M4I:Germany M4I:Germany MA:Canada MSCD34:Brazil MAST:Austria

Address

2000 Purchase Street, Purchase, NY, USA, 10577

Website

https://www.mastercard.com

Mastercard is the second-largest payment processor in the world, having processed close to over $8 trillion in transactions during 2022. Mastercard operates in over 200 countries and processes transactions in over 150 currencies.

Executives

Ajay Bhalla	officer: President Cyber & Intelligence	2000 PURCHASE STREET, PURCHASE NY 10577
Craig Vosburg	officer: President, North America	2000 PURCHASE STREET, PURCHASE NY 10577
Edward Grunde Mclaughlin	officer: President, Operations & Tech	2000 PURCHASE STREET, PURCHASE NY 10577
Foundation Mastercard	10 percent owner	250 YONGE STREET, SUITE 2400, TORONTO A6 M5B 2L7
Richard K Davis	director	800 NICOLLET MALL, MINNEAPOLIS MN 55402
J. Mehra Sachin	officer: Chief Financial Officer	HESS CORPORATION, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Hai Ling	officer: Co-President, Intl Markets	2000 PURCHASE STREET, PURCHASE NY 10577
Timothy H Murphy	officer: General Counsel	2000 PURCHASE STREET, PURCHASE NY 10577
Raj Seshadri	officer: President, Data & Services	880 CARILLON PARKWAY, ST. PETERSBURG FL 33716
Raghuvir Malhotra	officer: Co-President, Intl Markets	2000 PURCHASE STREET, PURCHASE NY 10577
Michael Miebach	officer: Chief Product Officer	2000 PURCHASE STREET, PURCHASE NY 10577
Linda Pistecchia Kirkpatrick	officer: President, North America	2000 PURCHASE STREET, PURCHASE NY 10577
Harit Talwar	director	2500 LAKE COOK ROAD, RIVERWOODS IL 60015
Sandra A Arkell	officer: Controller	3005 HIGHLAND PARKWAY, SUITE 200, DOWNERS GROVE IL 60515
Candido Bracher	director	2000 PURCHASE STREET, PURCHASE NY 10577