Payment Networks

Mastercard ROIC: Why the Payment Network Generates Such High Returns on Capital

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Mastercard ROIC analysis showing operating profitability and invested capital

Mastercard ROIC can look almost implausibly high when the calculation is built from the company’s FY2025 financial statements. Using a simplified approach, estimated NOPAT of about $15.231 billion divided by average invested capital of roughly $16.240 billion produces an ROIC near 93.8%. That number is useful, but not because investors should treat 93.8% as a … Read more

Visa Operating Leverage: What FY2026 Results Really Show

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Visa FY2026 operating leverage analysis comparing revenue, GAAP operating expenses, and operating income growth

Visa operating leverage looks positive at first glance in the company’s FY2026 results. For the nine months ended June 30, 2026, net revenue increased 15%, GAAP operating expenses rose 13%, and operating income grew about 17%. That combination normally points to positive operating leverage: revenue is expanding faster than the operating cost base, allowing a … Read more