Credit Card Bailout – Financial Situation of Mastercard
Posted on | November 10, 2008 | 7 Comments
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Mastercard is one of the behemoths of credit cards, that cannot be disputed. If Mastercard is taking a hit, then every corporation with any exposure to the credit card industry will take a hit. Many analysts suggested that Mastercard would be a great investment in a troubled market as more Americans will use credit cards to make purchases. The problem that exists is the fact that Americans are struggling to make payments toward their credit debt. We will see this in great detail when we look at Mastercard’s balance sheet.
Once again, income after taxes is the money that is earned after all expense and fees have been taken out. It is pure profit for that period of time. If we look at the income after taxes for the last two quarters at Mastercard, we see some MAJOR problems. Quarter 2 of 2008 showed that Mastercard LOST $1,233.2 million. That is an enormous loss. After a quarter like that, a bounce back quarter is need to fund the corporation. This is not what happened at Mastercard. Instead, Quarter 3 of 2008 was another loss for Mastercard; a loss of $279.3 million. Over the last half year, Mastercard has lost a total of $1,512,500,000!
If this isn’t a sign of things starting to crumble for the credit card industry, then nothing is. Mastercard must find a way to produce a profit in the next few quarters or it is going to get very ugly for this credit card giant.
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7 Responses to “Credit Card Bailout – Financial Situation of Mastercard”
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November 10th, 2008 @ 4:01 pm
Thanks for posting the article, was certainly a great read!
November 10th, 2008 @ 4:18 pm
[...] The Langerhans Org Blog wrote an interesting post today onHere’s a quick excerpt Mastercard is one of the behemoths of credit cards, that cannot be disputed. If Mastercard is taking a hit, then every corporation with any exposure to the credit card industry will take a hit. Many analysts suggested that Mastercard would be a great investment in a troubled market as more Americans will use credit cards to make purchases. The problem that exists is the fact that Americans are struggling to make payments toward their credit debt. We will see this in great detail when we loo [...]
November 10th, 2008 @ 6:13 pm
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November 10th, 2008 @ 8:25 pm
[...] Originally posted [...]
November 11th, 2008 @ 4:02 pm
[...] Credit Card Bailout – The Financial Situation of Mastercard [...]
November 19th, 2008 @ 11:26 am
The whole thing makes me sick. When do you see it ending or at least letting up?
January 28th, 2009 @ 3:44 pm
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