Visa is headquartered in California but doing business on a truly global scale. Visa is officially operating on every continent on the globe and processes billions of payments each year. In 2015 alone, Visa’s global network processed 100 billion transactions, totaling $6.8 trillion USD.
An important question: is Visa a good investment for the Canadian investor? Let’s look at it’s financial reports to help determine if Visa is as healthy as it appears to be.
Visa’s total revenue generated in 2015 was $13.8B USD, compared to $12.7B USD in 2014 and $11.8B USD in 2013, which is a total growth of 17.8% from 2013 to 2015. Visa’s total operating expenses have grown by 6.1% from 2013 to 2015, totaling $4.8B USD in 2015. I suppose the larger the company, the larger the operating expenses would be to pay: staff, taxes and office space. Visa’s net profit, the profit after taxes and all expenses, has grown by 29.2% since 2013 to 2015, reaching a total of $6.45B USD. Visa is a billion dollar company.
The next question is whether Visa was able to pay for its liabilities in 2015. According to its balance sheet, Visa had total debts or liabilities amounting to $10.4B USD. Visa also has total assets reaching $40.2B USD, therefore it’s likely safe to say that Visa can afford to meet it’s liabilities and is therefore a healthy company.